RTG Mining Inc (ASX:RTG) Secures US$30M Financing for Mabilo Project with Glencore Partnership
Strategic Partnership and Financing
RTG Mining Inc has entered into a strategic partnership with Glencore International AG to finance Stage 1 of the high-grade Mabilo Copper-Gold Project. A binding term sheet has been executed, securing US$30 million through three tranches. Tranche A offers US$3.5 million for early funding needs, Tranche B provides US$21.5 million for the main development, and Tranche C allocates US$5.0 million for additional working capital.
Project Development and Offtake
The financing facility will cover 100% of the estimated development budget, including an extra US$5 million for potential cost overruns. Offtake agreements have been established for all Stage 1 products, including Gold Oxide Cap and Supergene Chalcocite, on market terms. The Stage 1 Direct Shipping Operation is expected to produce approximately 100,000 tonnes of supergene chalcocite with a 21% reserve grade copper.
Executive Comments
CEO Justine Magee commented, “This is a very important and exciting step in the start-up of the high-grade Mabilo Copper-Gold Project and signals the transition of RTG from explorer / developer to producer. We are delighted to be partnering with Glencore to advance Mabilo, and the favourable finance and offtake terms also come with a strong counterparty and group that have been both active and successful themselves in the Philippines via the PASAR Refinery.”
Future Outlook
With the secured financing, RTG Mining is poised to finalise land acquisition and commence the development schedule. RTG Mining expects the partnership with Glencore to enhance shareholder value and support the company’s transition to a producing gold and copper entity.
Motley Fool contributor Lauren Surplice has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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