04 Oct Glencore grabs further stake in Peru’s largest zinc miner
Glencore (LSE:GLEN) has purchased a further stake in Peru’s largest zinc miner, Volcan Compañia Minera SAA, in a deal which could be worth up to US$956 million.
The diversified mining giant said it would be taking at least another 26.73% of the voting shares in Volcan worth an initial $531 million, but the nature of the deal means Glencore could end up with a 50% stake in the company.
The deal will be implemented under Peruvian law through a tender offer for up to 48.19% of the company’s class A common shares, which would push the transaction up to $956 million.
Glencore is one of the world’s largest miners and producers of zinc and is looking to capitalise on the current trading price of the metal, which recently hit a 10-year high.
“Volcan’s operations are located in the richest polymetallic production area in Peru, producing some of the highest quality zinc concentrates,” said the Swiss-based company.
Volcan also has silver and lead mining operations based across the Peruvian Andes region.