Noranda Income Fund, which owns the second-largest zinc processing facility in North America, has entered a streaming agreement with BaseCore Metals to fund the former’s long-term investments in the plant.
Under the agreement, Noranda will get a stream of $40mn from BaseCore to fund the upgrades and expansion of its electrolytic zinc refining and processing facility located in Salaberry-de-Valleyfield, Quebec. The investment, BaseCore said in a statement on July 27, will be used to increase the plant’s zinc production capacity and upgrade its filtration and cooling processes.
According to Liana Centomo, chief executive officer of Canadian Electrolytic Zinc Limited, the fund’s manager, BaseCore’s investment will help the facility to improve its operational efficiencies as well as its capital structure. The upgrades will facilitate the company to reduce its zinc production and processing costs.
BaseCore is a joint venture between Glencore Canada and the Ontario Teachers Pension fund. It is a streaming and royalty provider focusing on base metals and also provides long-term financing for miners in the region.