Evolution Mining will pay Glencore $880 million in a deal to take an economic interest in the Ernest Henry copper and gold mine in Queensland.
Australia's second largest gold miner by output, Evolution will take all future gold production and 30 per cent of future copper and silver production from the Glencore-owned mine, and pay 30 per cent of future production costs.
Glencore said the deal is part of its debt reduction strategy.
Evolution says the deal will be earnings, cash flow and value accretive and extends the company's average reserve life.
The company is raising $401 million through an underwritten rights share offer to partly fund the transaction, and will raise a $500 million five-year term loan to fund the balance. Evolution shares were put in a trading halt on Friday ahead of the share offer.
