Transactions & Cases Detail
Glencore and Ontario Teachers' Pension Plan enter into a royalty and streaming partnership
December 5, 2017
Mining & Metals
300 Million USD
On December 5, 2017, Glencore Canada Corporation ("Glencore"), a subsidiary of Glencore International AG, and Ontario Teachers' Pension Plan ("Ontario Teachers'") announced the formation of a limited partnership called 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 an initial portfolio of selected royalties valued at approximately US$300 million, and Ontario Teachers' subscribed for its interest in BaseCore Metals for cash at closing (the amount was then paid to Glencore). 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.
Glencore is one of the world's largest global diversified natural resource companies and a major producer and marketer of more than 90 commodities. This partnership will enable Glencore to secure further offtakes for its marketing business. BaseCore Metals is unique in the mining sector and will provide future transaction partners with deep sector expertise, operating and technical skills alongside access to capital.
McCarthy Tétrault LLP advised Glencore with a team led by Roger Taplin that included Adam Taylor, Adam Wanke, Patrick Deutscher, Jerry Nguyen, Ainslie Hurd and Stephanie Axmann.