Sydney, Australia — MININGREVIEW.COM — 24 August 2010 – Glencore International AG “’ one of the world’s largest suppliers of a wide range of commodities and raw materials to industrial consumers “’ and Australian-based resource company Blackthorn Resources have signed a legally binding agreement towards formation of a joint venture (JV) for the Perkoa zinc project in Burkina Faso
A statement issued here explained that under the proposed JV, Glencore would agree to invest US$80 million (R600 million) in the project to fund the remaining capital expected to be required to commission the Perkoa zinc mine. The first US$50 million (R375 million) of investment by Glencore would be in the form of equity contribution, with up to US$30 million (R225 million) of investment to be provided in the form of project finance for the JV.
Upon formation of the JV, Glencore would effectively control 50.1% of the Perkoa zinc project, with Blackthorn and the State of Burkina Faso holding interests of 39.9% and 10.0% respectively.
The statement added that, following establishment of the JV, Glencore would be responsible for managing construction with the aim of allowing Perkoa to be producing saleable zinc concentrate in early 2012.
The investment by Glencore will also result in Blackthorn Resources having two of the world’s largest resource companies as joint venture partners in two quality base metals projects in Africa – Glencore at the Perkoa zinc project and BHP Billiton at the Mumbwa copper project in Zambia.