Part of the Stock Digest group of websites: Visit Tech Stock Digest  

Glencore, Canadian teachers launch mining royalty firm

Swiss miner and commodities trader Glencore (LON:GLEN) and Canada's third largest pension fund are launching a new base-metals royalty firm, named BaseCore Metals, the companies said Tuesday.

Glencore Canada and the Ontario Teachers’ Pension Plan, which manages benefits for retired for schoolteachers of that Canadian province, will have a 50-50 ownership in the new company.

Under the terms of the deal, Glencore contributed a portfolio of selected royalties and Ontario Teachers acquired its interest in BaseCore Metals for cash.

The 50-50 joint venture, named BaseCore Metals, will be independently operated and it will focus on investing in base metals streams and royalties.

The initial royalty portfolio of the joint venture, which will focus on investing in base metals streams and royalties, is estimated in roughly $300 million.

It includes a selection of existing royalties on producing and development stage properties in North and South America, including the Antamina and Highland Valley mines as well as the Horne 5 and El Pilar projects.

BaseCore Metals will be independently operated and have its own board of directors, the parties said, adding that the newly formed firm will actively pursue investment opportunities.

“The creation of BaseCore Metals is unique in the sector and will enable us to secure further offtakes for our marketing business,” Glencore chief executive, Ivan Glasenberg, said in the statement.

Rumours of Glencore planning a spin-off of its mining royalties portfolio into a standalone company had been circulating for months.

The company’s plan is to emulate the model of companies such as Canada’s Franco-Nevada (TSX, NYSE:FNV), which does not own any mines but instead makes money by reselling a percentage of other firms’ output.

Click here to continue reading...

Subscribe to the RSD email list and get the latest resource stock activity directly to your inbox, for free.



Name Last Change
DOW 24277.70 0.60%
S&P 500 2626.71 0.42%
NASDAQ 6992.53 0.40%
TSX 14669.27 0.40%
TSX-V 564.02 0.00%

Resource Commodities

Name Last Change
Gold 1241.60 0.21%
Silver 14.54 0.14%
Copper 2.72 0.040
Platinum 783.63 0.40%
Oil 51.00 3.16%
Natural Gas 4.55 1.25%
Uranium 28.75 0.86%
Zinc 1.21 0.00%


Part of the Stock Digest family of websites
Small Cap Stock Digest