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Glencore is set to acquire a 56.25 per cent stake in the MARA project from Pan American Silver.

The MARA project is located in the Catamarca province of Argentina, approximately 25 kilometres north of Andalgala.

It is a high-quality, long life, low-risk brownfield project and its primary metals include copper, gold, molybdenum and silver.

The MARA project has proven and probable mineral reserves of 5.4 million tonnes of copper and 7.4 million ounces of gold contained in 1.105 billion tonnes of ore. It has a 27-year mine life based on mineral reserves supported by more than 86 kilometres of drilling.

Once operational, the MARA project is expected to be part of the top 25 global copper producers, with an expected average copper production over the first ten full years exceeding 200 kilotons per annum.

The MARA project was originally formed as a joint venture in December 2020 between Glencore, Yamana Gold and Newmont, following the integration of the Minera Alumbrera plant and mining infrastructure and Agua Rica project.

Glencore acquired Newmont’s 18.75 per cent stake in late September 2022, bringing its total shareholding to 43.75 per cent.

Pan American Silver acquired Yamana Gold’s 56.25 per cent stake in the MARA project as part of its acquisition of Yamana Gold in March 2023.

Under the terms of the agreement, Glencore will pay $475 million in cash upon closing and will grant Pan American Silver a copper net smelter return (NSR) royalty of 0.75 per cent.

Pan American Silver chief executive officer Michael Steinmann said its sale to Glencore is aligned with its aim to optimise its portfolio following the Yamana Gold acquisition.

“These transactions not only reaffirm our commitment to our core business but also yield substantial and immediate value to our shareholders, while maintaining future upside through the retention of copper and gold royalties with strong counterparties,” Steinmann said.