Pan American Silver Corp shares popped Monday after the company announced plans to sell a 56% stake in an Argentinian copper project to Glencore.
The Swiss giant will pay $475 million to Pan American Silver as the latter moves to sell some non-core assets.
The company’s shares rose more than 6% to $16.86, while Glencore stock also rose nearly 2% to $12.15.
Buying the stake gives Glencore complete ownership of the Minera Agua Rica Alumbrera, according to a statement. Glencore had initially bought a nearly 19% stake from Newmont Corp.
The MARA joint venture has proven and probable mineral reserves of 5.4 million tonnes of copper and 7.4 million ounces of gold. The deal is expected to close in the third quarter.
The move enables Glencore to grow its copper operations, which the company sees are critical to powering the green energy transition.
This isn’t Glencore’s first copper purchase, either. Earlier this month, the company bought a remaining 18% stake in PolyMet Mining, and looking ahead, the firm has had its eye on Candian copper producer Teck Resources, according to reports.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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