Sydney, Australia — MININGREVIEW.COM — 29 January 2010 – Blackthorn Resources Limited “’ an Australian-based resources company with a diverse portfolio of African assets “’ has revealed the commercial terms of the Heads of Agreement it signed with mining giant Glencore International AG for a joint venture to develop and operate the Perkoa zinc mine in Burkina Faso
A Blackthorn announcement released here said Glencore would provide or procure funding to complete development of the Perkoa project, estimated at US$72 million (R540 million). It would earn a 50.1% interest in the JV, and would provide or procure loans to the JV.
The statement went on to say that Glencore would purchase all of the Perkoa project’s available base metal concentrates not otherwise contracted to other customers.
In terms of the agreement, Glencore is being appointed as JV manager and will be a committed strategic partner to Blackthorn Resources and the State of Burkina Faso, with the financial capacity to see the project through to completion
The proposed transaction will be subject to shareholder approval which will be sought via an extraordinary general meeting once binding documents are executed.