Trafigura has entered into a $350m (S$450.64m) loan facility agreement to support Develop Global’s two new mining projects in Western Australia (WA).
The loan will fund the development of the Sulphur Springs copper-silver-zinc project and the Pioneer Dome Lithium Project.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Both are expected to produce critical industrial and battery metals.
In addition to the loan, Trafigura and Develop have signed binding offtake agreements that give Trafigura rights to purchase all of the available output from both projects for a specified duration.
The arrangement also includes warrants which, if exercised, offer Develop the possibility of securing up to an additional $50m in funding.
The agreement also involves Trafigura refinancing an existing loan attached to Develop’s Woodlawn copper-zinc-lead operation.
In addition, both companies will consider other collaborative opportunities aimed at furthering Develop’s expansion plans.
Following the completion of the financing and offtake arrangements, Develop has made final investment decisions on the two projects, advancing from operating a single mine to managing a broader portfolio.
Develop MD Bill Beament said: “These are pivotal developments which set our company up for rapid growth. They unlock [the] huge value of these two projects, putting us on track to generate significant cash flows from three operations covering copper, zinc, silver and lithium, and all in Australia.”
Through this deal, Trafigura ensures ongoing access to key minerals from a highly regarded mining region for distribution to its global customer base.
Trafigura stated that the loan facility, arranged through its Metals, Minerals and Bulk Commodities division, is part of the company’s strategy to support the global supply chain for metals and minerals in response to increasing worldwide demand.
Last month, Trafigura signed a term sheet with the Egyptian Aluminium Company and Metallurgical Industries Holding to establish a new primary aluminium smelter.
