Zanaga Iron Ore Acquires Outstanding Iron-Ore Project Stake in Return for Shares
November 23 2022 - 5:03AM
Dow Jones News
By Joe Hoppe
Zanaga Iron Ore Co. shares rose Wednesday after it said that it
has agreed to acquire Glencore Projects' controlling shareholding
in the Zanaga Iron Ore project in return for shares.
Shares at 0912 GMT were up 0.66 pence, or 20% at 4.0 pence.
The company said it will acquire Glencore's 50% plus one
shareholding in Jumelles, the entity that indirectly holds the
project's mining license.
In return, Glencore will be issued 286.3 million new shares in
Zanaga, which is expected to represent a total shareholding of
48.26% in the company post-completion.
Glencore International, Zanaga and Jumelles' subsidiary MPD also
entered a marketing agreement, taking effect immediately before the
transaction completes. The agreement is for the sale and purchase
of all future iron-ore production from the project and any other
affiliates in the Republic of Congo.
To fund the project's continuing work program and budget, as
well as Zanaga's working capital requirements, Glencore has agreed
to amend terms of a loan agreement, raising it from $1.2 million to
$1.8 million, and extending the repayment date to the end of
2023.
Write to Joe Hoppe at joseph.hoppe@wsj.com
(END) Dow Jones Newswires
November 23, 2022 04:48 ET (09:48 GMT)
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