Perth, Australia — MININGREVIEW.COM — 12 August 2010 – Blackthorn Resources Limited and Glencore International AG have reached advanced agreement regarding the establishment of a JV for the completion of construction and operation of the Perkoa Zinc mine project in Burkina Faso.
Revealing this in a statement issued here, Blackthorn said the two companies had concluded commercial negotiations and reached agreement on detailed commercial terms contained within nine “cornerstone” JV documents, with a number of outstanding issues having been recently resolved.”
“The Board of Blackthorn has considered the cornerstone documents negotiated with Glencore senior management and given conditional approval for execution of documents, subject to finalisation of a number of supporting legal documents,” the statement added.
Work is continuing with legal teams to conclude supporting legal documentation and implement the necessary transaction steps. The process of finalising supporting documents is expected to take approximately one week, with the execution of binding documents to follow soon thereafter.
Blackthorn added that following execution of the full set of required documents, the establishment of a JV for the Perkoa zinc project would be subject to a limited number of conditions precedent, including shareholder approval via an EGM. A Notice of Meeting for an EGM, incorporating shareholder information about the proposed transaction, was currently being drafted.
Managing director Scott Lowe said: “We are pleased that the detailed commercial terms contained within the cornerstone documents have now been settled, and we look forward to having this work finalised in the near future.”