Deals
Glencore Is Close to Creating a Mining Royalty Company
- $700 million deal with pension fund to close within few weeks
- New vehicle to start with royalty streams from about 10 mines
Photographer: Brendon Thorne/Bloomberg
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Glencore Plc is close to finalizing a $700 million deal with the Ontario Teachers’ Pension Plan to create a new base-metals royalty company, according to people familiar with the matter.
The Swiss commodity giant will bring royalty agreements from about 10 mines, while Ontario Teachers’ will contribute about $350 million in capital to allow the company to buy further royalty streams from other projects. Glencore and Ontario Teachers’ will each have a 50 percent stake in the new vehicle and the deal is expected to close in the next few weeks, the people said, asking not be to identified as the talks are confidential.