BC-based Pan American to sell MARA project shares to Swiss mining firm for $631 million

British Columbia’s Pan American Silver Corp. agreed to sell its remaining shares in MARA, an Argentina-based mineral reserves project, to a Swiss mining firm for approximately $631 million (US$475 million). Also in this week’s deals roundup are investment and M&A deals in the mining and energy industries.

British Columbia’s Pan American to sell shares in MARA to Glencore for $631 million

British Columbia-based Pan American Silver Corp. and Swiss mining firm Glencore International AG have reached an agreement for Glencore to buy the remaining 56.2 percent interest in the MARA project from Pan American in a deal valued at approximately $631 million (US$475 million).

The Argentina-based MARA project has mineral reserves of 5.4 million tonnes of copper and 7.4 million ounces of gold contained in 1.105 billion tonnes of ore.

The project started in December 2020 as part of the joint venture between Yamana Gold, Glencore, and Newmont to integrate the Minera Alumbrera plant and mining infrastructure and the Agua Rica project.

In October 2022, Glencore’s shares in the project rose to 43.75 percent after acquiring Newmont’s 18.75 percent stake.

In March 2023, Pan American bought Yamana Gold’s 56.25 percent shares as part of its acquisition of Yamana Gold Inc.

Upon deal completion, Glencore will become MARA's sole owner and operator.

The deal is expected to close in the third quarter of 2023, subject to customary conditions and regulatory filings.

LNG Energy to receive $93 million in financing to fund Lewis Energy Colombia acquisition

A subsidiary of LNG Holdings Inc., formerly known as LNG Energy Group Inc., has entered into a definitive credit agreement with Macquarie Group wherein Macquarie will provide approximately $93 million (US$70 million) to fund the acquisition of Lewis Energy Colombia, Inc.

As part of the agreement, Macquarie will provide a 5-year, senior secured amortizing loan to LNG Energy.

“LNG Energy is very pleased to be moving ahead with the acquisition of Lewis Energy Colombia,” said LNG Energy Chairman and CEO Pablo Navarro. “The transaction represents the go-public of a leader in the Colombian energy sector, that owns and operates premier natural gas assets near the city of Barranquilla.”

Macquarie Group Commodities and Global Markets Managing Director and Head of Latin America Private Credit Catalina Hayata said, “We are pleased to provide financing to the LNG Energy team in its acquisition of Lewis Energy Colombia. This is a unique opportunity to back a well-respected management team that is partnering with a world-class operator. This commitment builds upon our existing activities in Colombia. We are pleased to continue providing solutions and support to our clients in Latin America.”

Mississauga-based Russel Metals to sell stakes in TriMark for $61 million

Mississauga-based Russel Metals Inc. agreed to sell its 50 percent equity interest in TriMark Tubulars Ltd. to with Marubeni-Itochu Tubulars America Inc. (MITI) in a deal valued at approximately $61 million.

TriMark was formed in July 2021 by the merger of Russel Metals and MITI's respective Canadian OCTG/line pipe operations. Originally, Russel Metals had approximately $141 million of net assets in this sector. From these net assets, Russel Metals converted approximately $109 million into cash and retained $32 million as an equity interest in TriMark.

“This transaction represents the final step to our staged exit from the OCTG/line pipe business,” said Russel Metals president and CEO John Reid. “Over the past three years, we have repatriated approximately $375 million of capital from the OCTG/line pipe business and have reinvested in our core segments at superior returns with lower risk. Additionally, we have retained significant financial flexibility to opportunistically grow our company and return capital to our shareholders.”

The deal is expected to be completed in the third quarter of 2023, subject to customary regulatory approvals.