Blackthorn Resources (ASX: BTR) has provided an update on the negotiations with Glencore International AG regarding the establishment of a joint venture for the completion of construction and operation of the Perkoa Zinc Mine Project in Burkina Faso, West Africa.
On 12 January 2010, Blackthorn Resources announced that a Heads of Agreement had been signed with Glencore for a joint venture to develop and operate the Perkoa Zinc Mine Project.
Blackthorn Resources anticipated at the time of that announcement that subject to satisfactory completion of the due diligence process by Glencore and execution of documents, a Notice of Meeting would be issued by the end of March 2010 to schedule an EGM to vote on the proposed transaction.
This timeframe has not been met as various processes involved have taken longer than anticipated. However, the due diligence process undertaken by Glencore continues and is nearing completion.
Managing Director Scott Lowe said, “completing the detailed and comprehensive duediligence undertaken by Glencore on the Perkoa project along with the drafting of legally binding documents is taking a little longer than originally anticipated."
"However, the company remains committed to finalising the documents to secure a deal that is in the best interests of shareholders. We remain positive that Glencore has the necessary attributes to be a committed strategic JV partner.”
The establishment of the joint venture will be subject to a number of conditions precedent including negotiation and execution of definitive transaction documents and shareholder approval.
A Notice of Meeting for an EGM will be issued soon after definitive transaction documents are completed to schedule a meeting to seek shareholder approval.
The process of preparing of JV documents has commenced. The Company has recently received a number of draft documents from Glencore.
http://www.proactiveinvestors.co.uk/companies/news/15138/blackthorn-resources-perkoa-zinc-project-jv-with-glencore-on-track-15138.html
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