ZIOC considers acquisition of Glencore’s shareholding in Zanaga iron ore project

Zanaga Iron Ore Company (ZIOC) has reached an agreement with Glencore Projects, a subsidiary of Glencore International, to acquire its controlling stake in the Zanaga iron ore project in Congo-Brazzaville.
It said that the acquisition would be made through the purchase of Glencore Projects’ 50% plus one share interest in Jumelles, an entity that indirectly holds the benefit of the mining licence, for a minority stake in ZIOC.
ZIOC and MPD, an indirect wholly owned subsidiary of Jumelles which holds the benefit of the Project's mining licence, have also entered into a marketing agreement with Glencore International, which will take effect immediately before completion, for the sale and purchase of all future iron ore production from the project or any other of their or their affiliates' assets using similar infrastructure in Congo.
"The acquisition of Glencore Projects' shareholding in the project is a key milestone for ZIOC's shareholders, demonstrating to third-party investors that the project is now represented by a single entity and management strategy,” said ZIOC nonexecutive chairperson Clifford Elphick.
“The acquisition is value accretive to shareholders and increases effective equity ownership of the project by existing shareholders, enhancing their look-through ownership of the project and securing control of the project without paying any premium for such interest.”

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished