October 3, 2017 / 3:30 PM / a year ago

Glencore to buy more shares in Peruvian zinc miner Volcan

Oct 3 (Reuters) - Miner and commodities trading group Glencore Plc said it had agreed to buy 26.73 percent of the voting shares in Peru’s largest zinc miner, Volcan Compañia Minera SAA for $531 million.

Glencore is to pay $1.215 per class A common share, it said, adding that it currently holds a 7.68 percent economic interest in Volcan.

“Volcan’s operations are located in the richest polymetallic production area in Peru, producing some of the highest quality zinc concentrates,” Glencore said.

“The transaction will provide an increase and extension of Glencore’s zinc production profile and the opportunity for synergies with Glencore’s existing Peruvian zinc operations,” it added.

Following the deal, which will be implemented via a tender offer for up to 48.19 percent of the total class A common shares of Volcan, Glencore will have an economic interest in Volcan of between 18.98 percent and 28.07 percent, it said.

The total consideration payable by Glencore would be between $531 million and $956 million, depending on the level of acceptances, it added. (Reporting by Noor Zainab Hussain in Bengaluru)

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