TIDMGLEN
RNS Number : 4528Y
Glencore PLC
05 December 2017
Glencore plc
Baar, Switzerland
5 December, 2017
Glencore and Ontario Teachers' Pension Plan announce the
creation of a new partnership focused on base metals streams and
royalties
Baar, Switzerland and Toronto, Canada, Dec. 5, 2017 -- Glencore
Canada Corporation ("Glencore") and Ontario Teachers' Pension Plan
("Ontario Teachers'") today announced the formation of BaseCore
Metals LP, a 50:50 joint venture limited partnership focused on
base metals streams and royalties ("BaseCore Metals").
Under the terms of the agreements for BaseCore Metals, Glencore
contributed a portfolio of selected royalties (the "Royalty
Portfolio") and Ontario Teachers' subscribed for its interest in
BaseCore Metals for cash at closing (which amount was then paid to
Glencore). The value of the initial Royalty Portfolio contributed
to BaseCore Metals is approximately US$300 million.
The Royalty Portfolio 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 actively pursue investment opportunities,
focusing primarily on base metals streams and royalties. BaseCore
Metals will provide future transaction partners with deep sector
expertise, operating and technical skills alongside access to
capital.
Commenting on the transaction, Ivan Glasenberg, CEO of Glencore,
said: "The creation of BaseCore Metals is unique in the sector and
will enable us to secure further offtakes for our marketing
business. We are pleased to be partnering with Ontario Teachers' to
take advantage of the significant opportunities that are expected
to emerge across the sector in the coming years."
Andrew Claerhout, Senior Managing Director, Infrastructure and
Natural Resources at Ontario Teachers' added: "This investment in
BaseCore Metals and base metal streams and royalties reflects an
important component of Ontario Teachers' Natural Resources mandate
to ensure attractive relative returns through exposure to
commodities that are well-positioned to benefit as the world
transitions to a low-carbon economy. Working with strategic
operators who have an active presence in key industries is a
central tenet of Ontario Teachers' investment strategy, and we are
pleased to be forming this partnership with Glencore."
BaseCore Metals will be an independently operated entity,
governed by its own board of directors. Glencore and Ontario
Teachers' will each have the right to nominate directors to the
board.
Scotiabank acted as financial advisor and McCarthy Tétrault LLP
acted as legal advisor to Glencore. Morgan Stanley acted as
financial advisor and Stikeman Elliott LLP acted as legal advisor
to Ontario Teachers'.
For further information please contact:
Glencore
Investors
Martin Fewings t: +41 41 m: +41 79 martin.fewings@glencore.com
709 2880 737 5642
t: +41 41 m: +41 79
Ash Lazenby 709 27 14 543 38 04 ash.lazenby@glencore.com
Media
Charles t: +41 41 m: +41 79 charles.watenphul@glencore.com
Watenphul 709 2462 904 3320
Ontario Teachers' Pension Plan
Investment
Communications
Pav Jordan t: +1 416 pav_jordan@otpp.com
228 6862
CNC Communications
Oliver Mann t: +44 203 oliver.mann@cnc-communications.com
7551 607
www.glencore.com
Glencore LEI: 2138002658CPO9NBH955
About Glencore:
Glencore is one of the world's largest global diversified
natural resource companies and a major producer and marketer of
more than 90 commodities. The Group's operations comprise around
150 mining and metallurgical sites, oil production assets and
agricultural facilities.
With a strong footprint in both established and emerging regions
for natural resources, Glencore's industrial and marketing
activities are supported by a global network of more than 90
offices located in over 50 countries.
Glencore's customers are industrial consumers, such as those in
the automotive, steel, power generation, oil and food processing.
We also provide financing, logistics and other services to
producers and consumers of commodities. Glencore's companies employ
around 155,000 people, including contractors.
Glencore is proud to be a member of the Voluntary Principles on
Security and Human Rights and the International Council on Mining
and Metals. We are an active participant in the Extractive
Industries Transparency Initiative.
About Ontario Teachers' Pension Plan:
The Ontario Teachers' Pension Plan (Ontario Teachers') is
Canada's largest single-profession pension plan, with CAD$180.5
billion in net assets at June 30, 2017. It holds a diverse global
portfolio of assets, approximately 80% of which is managed
in-house, and has earned an annualized gross rate of return of
10.1% since the Plan's founding in 1990. Ontario Teachers' is an
independent organization headquartered in Toronto. Its Asia-Pacific
region office is located in Hong Kong and its Europe, Middle East
& Africa region office is in London. The defined-benefit plan,
which is fully funded, invests and administers the pensions of the
province of Ontario's 318,000 active and retired teachers. For more
information, visit otpp.com and follow us on Twitter @OtppInfo.
About the Royalty Portfolio:
Royalty Asset Owners Main Commodity Asset
Location
==================== ================= ================ ===========
Antamina One and Glencore, Copper Peru
Two Thirds NPI BHP, Teck / Zinc
Resources, / Silver
Mitsubishi
==================== ================= ================ ===========
Highland Valley Teck Resources Copper Canada
0.5% NPI
==================== ================= ================ ===========
Horne 5 2% NSR Falco Resources Gold Canada
==================== ================= ================ ===========
El Pilar 1% NSR Southern Copper Mexico
Copper
==================== ================= ================ ===========
Point Leamington Callinex Zinc Canada
1.5% NSR Mines
==================== ================= ================ ===========
Tulks South 2% NSR Canadian Zinc Canada
Zinc
==================== ================= ================ ===========
South Tally 2% NSR Canadian Zinc Canada
Zinc
==================== ================= ================ ===========
Long Lake 2% NSR Canadian Zinc Canada
Zinc
==================== ================= ================ ===========
Disclaimer
The companies in which Glencore plc directly and indirectly has
an interest are separate and distinct legal entities. In this
document, "Glencore", "Glencore group" and "Group" are used for
convenience only where references are made to Glencore plc and its
subsidiaries in general. These collective expressions are used for
ease of reference only and do not imply any other relationship
between the companies. Likewise, the words "we", "us" and "our" are
also used to refer collectively to members of the Group or to those
who work for them. These expressions are also used where no useful
purpose is served by identifying the particular company or
companies.
particular company or companies.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCOKPDNNBDDQBK
(END) Dow Jones Newswires
December 05, 2017 08:38 ET (13:38 GMT)
Glencore (LSE:GLEN)
Historical Stock Chart
From Apr 2024 to May 2024
Glencore (LSE:GLEN)
Historical Stock Chart
From May 2023 to May 2024