Mining giant Glencore Plc (GLNCY.PK) and Ontario Teachers' Pension Plan formed a joint venture for Glencore's portfolio of royalty assets, the companies said on Tuesday.

Glencore Canada Corp and Ontario Teachers' — Canada's third largest pension fund — will have a 50-50 ownership in the venture, BaseCore Metals LP.

BaseCore Metals will be independently operated and have its own board of directors.

Glencore said it contributed a portfolio of royalties to BaseCore valued at about US$300 million.

Royalty deals give the owner the right to receive a percentage of revenue or profits from a mining operation, often in exchange for financing.

Reuters reported in July that Glencore was in talks to form the joint venture with Ontario Teachers' Pension Plan.

The pension fund, with more than US$180 billion in net assets, has investments in natural resources and royalty interests in oil and gas.

Scotiabank was Glencore's financial adviser, while Morgan Stanley advised Ontario Teachers' Pension Plan.