Glencore International Plc will provide $80 million in
additional financing to meet working capital, construction and
commissioning costs for the Perkoa zinc, lead and silver
project in Burkina Faso.
joint-venture partner, Australian Stock Exchange-listed
Blackthorn Resources Ltd., said the additional financing will
cover working capital and additional capital requirements
"Blackthorn has elected not to
fund its share ($35 million) of the $80-million capital
requirement," the company said, and as a result its stake in
the project will fall to 27.3 percent from 39.9 percent. The
Burkina Faso government holds a non-dilutable 10-percent
interest in the operation.
The new shareholding structure
means Blackthorn will no longer be required to raise capital
for Perkoa, allowing it to preserve its cash resources for
developing its flagship Mumbwa copper project in Zambia while
retaining Perkoas key investment features and exposure to
a diversified base metals project, said Scott Lowe,
Blackthorns managing director. "For a company of
Blackthorn Resources size and profile, we believe this is
an appropriate balance to maintain," he added.
Perkoa is on course to ship its
first concentrates in the second quarter of 2013. Zinc grades
being mined from the open-pit mine so far are better than
originally expected, the company said.
A version of this article was first published by AMM sister
publication Metal Bulletin.