American depository shares of Vale SA (VALE) were up 1.6% in recent trade after Spain’s Emerita agreed to acquire the Salobro zinc project in Brazil from the company and IMS Engenharia Mineral. As part of the deal, Emerita has agreed to set up a Brazilian subsidiary to formally acquire the Salobro Project from IMS, the company said on Friday. Emerita will pay Vale $6.5 million in cash over seven years.
The rights to the Salobro Project are currently subject to litigation between Vale and IMS. as part of the transaction, Vale will withdraw its claims pending against IMS. Emerita will initially own 75% of the purchase vehicle with an exclusive right to acquire the remaining 25% interest in the unit from IMS at its sole option, Emerita said.