Glencore is planning to sell its option in a gold mine owned by Falco Resources, 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 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 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.