VANCOUVER — Trevali Mining (TSX: TV) is set to become a major player in the zinc business following an aggressive, $400-million deal with commodity giant Glencore (LON: GLEN).
The company expects the transaction to make it the world’s eighth-largest producer of the industrial metal, and “more than double its current production scale” to around 410 million payable lb. of zinc annually. Trevali will acquire majority stakes in two operating mines, namely: an 80% stake in the Rosh Pinah mine in Namibia, and a 90% interest in the Perkoa mine in Burkina Faso.
Glencore will receive US$244 million in cash, and 175 million shares priced at $1.20 each, which will result in it holding a 25% equity position in the pure-play zinc producer.
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