TORONTO — Glencore International AG is increasing its stake in Yamana Gold Inc.'s Mara project with a deal to buy Newmont Corp.'s 18.75 per cent interest.
Yamana will remain the Mara joint venture operator with a 56.25 per cent interest, while Glencore will own the remaining 43.75 per cent once the deal is complete.
Under the terms of the agreement, Glencore will pay Newmont US$124.9 million upon closing and a US$30-million deferred payment upon commercial production that is subject to an annual interest charge of six per cent.
The total deferred consideration is capped at US$50 million.
The Mara project is a brownfield project in the Catamarca province of Argentina.
Yamana says it looks forward to continuing its work with Glencore and the local stakeholders as the project advances its permitting, engineering, social licensing and field work.
This report by The Canadian Press was first published Sept. 23, 2022.
Companies in this story: (TSX:YRI, TSX:NGT)
The Canadian Press