Diversified miner Glencore has announced the sale of its Bolivian zinc assets to Canada’s Santa Cruz Silver Mining for $110-million.
Glencore will receive an initial $20-million on the completion date and a further $90-million in about four years from completion.
Santa Cruz Silver, which is a midtier producer currently operating in Mexico, will acquire Glencore’s Sinchi Wayra and Illapa assets.
Sinchi Wayra owns the Reserva, Tres Amigos and Colquechaquita mines, the Don Diego concentrator and power plants, as well as the Sorocaya project and San Lucas.
Illapa owns a 45% contractual joint venture (JV) right in the Porco and Bolivar mines. Comibol will continue to own the Illapa Mines and retain a 55% contractual JV.
At completion, Glencore will enter into net smelter royalty agreements, each at 1.5%, in respect of the Bolivian mining business with Santa Cruz, which provide for continued life-of-mine payments based on the performance of the relevant mines.
Glencore will also retain offtake rights for life-of-mine in respect of the production from the relevant mines.