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GLENCORE PLC - GLN: Glencore and Ontario Teachers Pension Plan Announce The Creation Of A New Partnership. Focused On Base Metals S

Release Date: 05/12/2017 16:24
Code(s): GLN     PDF:  
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GLN: Glencore and Ontario Teachers Pension Plan Announce The Creation Of A New Partnership.
Focused On Base Metals S

Glencore plc
(Incorporated in Jersey under the Companies (Jersey) Law 1991)
(Registration number 107710)
JSE Share Code: GLN
LSE Share Code: GLEN
HKSE Share Code: 805HK
ISIN: JE00B4T3BW64

Baar, Switzerland
5 December, 2017


  Glencore and Ontario Teachers’ Pension Plan announce the creation of a
      new partnership focused on base metals streams and royalties

Baar, Switzerland and Toronto, Canada, Dec. 5, 2017 -- Glencore Canada Corporation
(“Glencore”) and Ontario Teachers’ Pension Plan (“Ontario Teachers’”) today announced the
formation of BaseCore Metals LP, a 50:50 joint venture limited partnership focused on base metals
streams and royalties (“BaseCore Metals”).

Under the terms of the agreements for BaseCore Metals, Glencore contributed a portfolio of
selected royalties (the “Royalty Portfolio”) and Ontario Teachers’ subscribed for its interest in
BaseCore Metals for cash at closing (which amount was then paid to Glencore). The value of the
initial Royalty Portfolio contributed to BaseCore Metals is approximately US$300 million.

The Royalty Portfolio includes a selection of existing royalties on producing and development stage
properties in North and South America, including the Antamina and Highland Valley mines as well
as the Horne 5 and El Pilar projects.

BaseCore Metals will actively pursue investment opportunities, focusing primarily on base metals
streams and royalties. BaseCore Metals will provide future transaction partners with deep sector
expertise, operating and technical skills alongside access to capital.

Commenting on the transaction, Ivan Glasenberg, CEO of Glencore, said: “The creation of
BaseCore Metals is unique in the sector and will enable us to secure further offtakes for our
marketing business. We are pleased to be partnering with Ontario Teachers’ to take advantage of
the significant opportunities that are expected to emerge across the sector in the coming years.”

Andrew Claerhout, Senior Managing Director, Infrastructure and Natural Resources at Ontario
Teachers’ added: “This investment in BaseCore Metals and base metal streams and royalties
reflects an important component of Ontario Teachers’ Natural Resources mandate to ensure
attractive relative returns through exposure to commodities that are well-positioned to benefit as
the world transitions to a low-carbon economy. Working with strategic operators who have an active
presence in key industries is a central tenet of Ontario Teachers’ investment strategy, and we are
pleased to be forming this partnership with Glencore.”

BaseCore Metals will be an independently operated entity, governed by its own board of directors.
Glencore and Ontario Teachers’ will each have the right to nominate directors to the board.

Scotiabank acted as financial advisor and McCarthy Tétrault LLP acted as legal advisor to
Glencore. Morgan Stanley acted as financial advisor and Stikeman Elliott LLP acted as legal
advisor to Ontario Teachers’.
For further information please contact:

Glencore

Investors
Martin Fewings        t: +41 41 709 2880       m: +41 79 737 5642    martin.fewings@glencore.com
Ash Lazenby           t: +41 41 709 27 14      m: +41 79 543 38 04   ash.lazenby@glencore.com
Media
Charles Watenphul     t: +41 41 709 2462       m: +41 79 904 3320    charles.watenphul@glencore.com

Ontario Teachers’ Pension Plan

Investment
Communications
Pav Jordan            t: +1 416 228 6862      pav_jordan@otpp.com

CNC
Communications
Oliver Mann           t: +44 203 7551 607     oliver.mann@cnc-
                                              communications.com
www.glencore.com

Glencore LEI: 2138002658CPO9NBH955


About Glencore:

Glencore is one of the world’s largest global diversified natural resource companies and a major
producer and marketer of more than 90 commodities. The Group’s operations comprise around 150
mining and metallurgical sites, oil production assets and agricultural facilities.

With a strong footprint in both established and emerging regions for natural resources, Glencore's
industrial and marketing activities are supported by a global network of more than 90 offices located
in over 50 countries.

Glencore's customers are industrial consumers, such as those in the automotive, steel, power
generation, oil and food processing. We also provide financing, logistics and other services to
producers and consumers of commodities. Glencore’s companies employ around 155,000 people,
including contractors.

Glencore is proud to be a member of the Voluntary Principles on Security and Human Rights and
the International Council on Mining and Metals. We are an active participant in the Extractive
Industries Transparency Initiative.

About Ontario Teachers’ Pension Plan:

The Ontario Teachers' Pension Plan (Ontario Teachers') is Canada's largest single-profession
pension plan, with CAD$180.5 billion in net assets at June 30, 2017. It holds a diverse global
portfolio of assets, approximately 80% of which is managed in-house, and has earned an
annualized gross rate of return of 10.1% since the Plan's founding in 1990. Ontario Teachers' is an
independent organization headquartered in Toronto. Its Asia-Pacific region office is located in Hong
Kong and its Europe, Middle East & Africa region office is in London. The defined-benefit plan,
which is fully funded, invests and administers the pensions of the province of Ontario's 318,000
active and retired teachers. For more information, visit otpp.com and follow us on
Twitter @OtppInfo.
About the Royalty Portfolio:

                                                                                   Main                    Asset
Royalty                                           Asset Owners
                                                                                   Commodity               Location

                                                  Glencore, BHP, Teck              Copper / Zinc /
Antamina One and Two Thirds NPI                                                                            Peru
                                                  Resources, Mitsubishi            Silver
Highland Valley 0.5% NPI                          Teck Resources                   Copper                  Canada

Horne 5 2% NSR                                    Falco Resources                  Gold                    Canada

El Pilar 1% NSR                                   Southern Copper                  Copper                  Mexico

Point Leamington 1.5% NSR                         Callinex Mines                   Zinc                    Canada

Tulks South 2% NSR                                Canadian Zinc                    Zinc                    Canada

South Tally 2% NSR                                Canadian Zinc                    Zinc                    Canada

Long Lake 2% NSR                                  Canadian Zinc                    Zinc                    Canada




Disclaimer
The companies in which Glencore plc directly and indirectly has an interest are separate and distinct legal entities. In this
document, “Glencore”, “Glencore group” and “Group” are used for convenience only where references are made to Glencore
plc and its subsidiaries in general. These collective expressions are used for ease of reference only and do not imply any
other relationship between the companies. Likewise, the words “we”, “us” and “our” are also used to refer collectively to
members of the Group or to those who work for them. These expressions are also used where no useful purpose is served
by identifying the particular company or companies.

particular company or companies.


Sponsor
Absa Bank Limited (acting through its Corporate and Investment Banking Division)

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