Global Alumina Corp. (GLA.U.T) has approved agreements to form a joint venture to develop and operate its alumina refinery project in the Republic of Guinea.

The company said that, through its Global Alumina International Ltd. unit, it will sell a two-thirds interest in the project to BHP Billiton Ltd. (BHP), Dubai Aluminium Co., or DUBAL, and Mubadala Development Co. PJSC for total proceeds of about $260 million, payable in four instalments.

The transaction will allow the company to continue implementation of the project in accordance with the investment and concession agreement with the Government of Guinea signed in 2004.

The joint venture will be effected through a share subscription agreement whereby each of BHP Billiton, DUBAL and Mubadala will subscribe for interests in the shares of Guinea Alumina Corp., an indirect unit of Global Alumina. Following closing of the subscription, the ownership structure of Guinea Alumina will be 33.3% Global Alumina, 33.3% BHP Billiton, 25% DUBAL and 8.3% Mubadala.

Global Alumina, Toronto, aims to develop the bauxite resources of Guinea to produce alumina for sale to the global aluminium industry.