A novel antifungal antibiotic, transvalencin A, is produced by Nocardia transvalensis IFM 10065 isolated from a patient with actinomycotic mycetoma in Japan. The antibiotic structure was elucidated using NMR, mass spectrometric investigations, and X-ray crystallographic analysis. Transvalencin A is a 1:1 complex of a zinc and an organic acid with a phenolic substituent. Transvalencin A is comprised of o-substituted p-chlorophenol, tetrasubstituted oxazoline, disubstituted thiazolyl-N-methylthiazolidine and monosubstituted N-methylthiazolidine.