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Glencore has entered into a definitive agreement to sell its controlling stake in Volcan Compañia Minera, one of the largest producers of zinc, lead, and silver in the world.

Glencore is selling its 55.03 per cent stake to Transition Metals AG, a subsidiary of Integra Capital, a financial and investment firm that has invested in a diversified portfolio in Argentina and beyond.

“As part of the transaction, Transition Metals will pay Glencore $US20 million and Glencore has agreed to provide a secured facility of up to $US40 million to fund certain mandatory tender offer obligations of Transition Metals pursuant to applicable Peruvian laws and regulations,” Glencore said in a statement.

“The transaction is not subject to any regulatory approvals and is expected to close this week.”

Glencore first acquired a stake in Volcan in November 2017 via a purchase offer at $US1.215 per A share.

At the end of the offer, Glencore acquired 36.92 per cent of the class A common shares, leading the company to hold 55.03 per cent of the total class A common shares. The company also gained 23.29 per cent of the class B common shares, which excluded treasury shares.

Volcan is currently operating 12 mines and eight plants across five mining units. All of its operations are located in the Central Sierra of Peru and the company holds 29.7 million tonnes in total mineral reserves and 470.8 million tonnes in total mineral resources, as of 2023.

In other news, Glencore recently welcomed top-end profits and a copper boost, just in time for global demand to take off.