Cyprium Metals Limited (ASX: CYM) (Cyprium or the Company) is pleased to advise that it has entered into a Commercial Strategic Partnership with Glencore International AG (Glencore) to accelerate the resumption of copper production from the Company’s Nifty copper complex (Nifty) in Western Australia near Port Hedland.
Highlights include:
Executed cathode offtake term sheet to sell cathode products to Glencore on commercial terms for a fixed term, thereafter mutually extendableOfftake contract adds resilience to restart cathode production through acceptance of off-spec cathode materials at Glencore’s refinery in Townsville, QueenslandCyprium to enter into sulphuric acid supply agreement with Glencore on commercial termsA$20 million Prepayment / Working Capital Facility on copper production, subject to final agreementsExecuted concentrate offtake term sheet for the sale of 100% of the copper concentrate production from the new surface mine at Nifty, as available, to Glencore International AG on commercial terms commencing immediately following commercial production for a fixed term, thereafter mutually extendable.Glencore to make all reasonable efforts to consider delivering Nifty concentrates to its Mt Isa SmelterGlencore Technology to provide technical support to CypriumThe agreement provides for a limited period of exclusivity during which Cyprium and Glencore endeavour to execute final contracts
“Glencore is a great strategic partner for us,” said Cyprium Executive Chair Matt Fifield. “We continue to execute our plan to resume copper production at Nifty. This commercial partnership gives us certainty of revenue during the crucial startup phases of Nifty’s two processing plants, removes uncertainty in sourcing a key input into cathode production, and aligns with creating and maintaining a strong Australian job base in the ultimate critical mineral, copper.”
The strategic partnership focuses on four areas that relate to the resumption of copper production from Nifty: cathode offtake, sulphuric acid supply, concentrate sales, and technical support. Copper products from Nifty’s two processing plants will be purchased by Glencore, importantly including off-spec materials that are frequently produced during a startup period.
The cathode offtake contract covers the sale and purchase of 100% of cathodes produced and delivered to Port Hedland, and has an initial fixed term, thereafter mutually extendable. Terms and conditions are at market and reflect today’s favourable copper market dynamics.
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