Glencore plans to sell option in Falco's Horne gold project -sources

Falco Resources

16/06/2016 13:32

By Freya Berry and Barbara Lewis 
    LONDON, June 16 (Reuters) - Glencore  GLEN.L  is planning to 
sell its option in a gold mine owned by Falco Resources  FPC.V , 
two sources familiar with the situation said on Thursday, as the 
mining group and commodities trader presses ahead with its asset 
sale programme. 
    London-listed Glencore has appointed BofA Merrill Lynch 
 BAC.N  to sell the 65 percent option in the Horne 5 gold 
project in Quebec, the sources said, and potential buyers have 
been contacted.  
    Falco has calculated that the undeveloped Horne 5 deposit 
could have a net present value (NPV) of about $667 million, 
assuming a gold price of $1,250 an ounce and certain currency 
exchange conditions, according to its website. 
    Spot gold  XAU=  was up 1 percent at $1,303.91 an ounce at 
1148 GMT on Thursday. 
    Glencore declined to comment. BofA Merrill Lynch and Falco 
Resources did not immediately respond to requests for comment.  
     
 
 (Additional reporting by Susan Taylor and John Tilak in 
Toronto; Editing by David Goodman) 
 ((freya.berry@thomsonreuters.com; +44207 5420214; Reuters 
Messaging: freya.berry.thomsonreuters.com@reuters.net)) 
 
Keywords: GLENCORE FALCO RESOURCES/M&A