Baar, Switzerland, 29-9-2014 — /EuropaWire/ — We refer to Glencore plc’s (“Glencore”) announcement on 31 October 2013 relating to the execution of a share sale agreement (“SSA”) with PanAust Limited (“PanAust”) for the sale of its interest in the Frieda River Project in Papua New Guinea (the “Transaction”).
Glencore is pleased to announce the Transaction has completed, effective 25 August 2014.
The consideration for the transaction is a cumulative USD125 million. The first installment of USD25 million has been paid on completion in addition to reimbursement of approximately USD4 million in costs incurred by Glencore between the execution of the SSA and 25 August 2014. The second installment of USD50 million¹ will be made on 31 December 2015. In addition, on successful completion of a development at Frieda River, Glencore will receive a 2% net smelter royalty (on PanAust’s interest in the Project) to a total aggregate amount of USD50 million².
For further information, please contact:
Paul Smith (Investors)
t: +41 (0)41 709 2487
m: +41 (0)79 947 1348
Charles Watenphul (Media)
t: +41 (0) 41 709 2462
m: +41 (0) 79 904 3320
Martin Fewings (Investors)
t: +41 (0) 41 709 2880
m: +41 (0) 79 737 5642
Elisa Morniroli (Investors)
t: +41 (0) 41 709 2818
m: +41 (0) 79 833 0508
t: +44 (0) 20 7251 3801
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 of over 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 employ around 200,000 people, including contractors.
¹Subject to consumer price index (“CPI”) escalation between the date of signing the SSA and on a quarterly basis each year prior to payment.
²Subject to CPI escalation between the date of signing the SSA and on a quarterly basis each year prior to payment.