Centaurus Metals has entered into binding offtake agreements and secured a $40m strategic equity investment from Glencore and CNGR Advanced Material for its Jaguar Nickel Project in Brazil.
The company reported that these new contracts, together with a previous agreement with Glencore, cover 100% of Jaguar’s nickel concentrate production during the first five years of planned operations.
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According to Centaurus, Glencore and a subsidiary of CNGR Advanced Material will each be supplied a minimum of 100,000 dry metric tonnes of high-grade nickel concentrate over a five-year term starting in the first half of 2029.
Each party will take approximately 25% of the annual production during this period.
Any additional production above the combined minimum of 40,000 tonnes per annum (tpa) will also be purchased by Glencore and CNGR, with parcels alternating between the two.
A prior agreement with Glencore covers a further 20,000tpa.
The company said that prices for the offtake contracts will be linked to the London Metal Exchange (LME) Cash Settlement nickel price, with nickel, copper and cobalt payability based on agreed terms.
Both Glencore and CNGR have the right to end the offtake contracts if Centaurus does not ship concentrate by the end of 2029.
Alongside the offtake arrangements, Glencore and CNGR will each provide $20m in equity investment to Centaurus, totalling $40m.
This funding will be made in two stages. An initial $12.5m from each party, subject to regulatory approval in CNGR’s case, will be followed by a further $7.5m each, which will require Centaurus shareholder approval and a final investment decision.
Centaurus stated that with the additional funding and contracted offtake in place, the process of securing senior debt finance for the Jaguar Nickel Project is now well advanced.
Centaurus was advised on the strategic investments and offtake agreements by Standard Chartered Bank in a financial capacity and by MPH Lawyers on legal matters.
Centaurus managing director Darren Gordon said: “The signing of these two new offtake and subscription agreements with global leaders in their respective fields of downstream nickel processing represents a major validation of the Jaguar Nickel Project and its credentials as one of the world’s most significant new sources of high-quality, low-cost nickel sulphide concentrate for global markets.”
