Officials at Glencore Xstrata announced a $125 million share sale agreement with PanAust Ltd. for their interest in the Frieda River Project in Papua New Guinea (PNG). Regulatory approvals are pending prior to Q3 2014; consideration comprises of $75 million in two installments.
The first installment will be $25 million upon transaction closing; the second $50 million installment will be made in Q4 2015. In addition, on successful Frieda River development, Glencore will receive a 2% net smelter return royalty interest totaling $50 million.
