Centaurus Secures Offtakes and US$40m From Glencore, CNGR

Centaurus (ASX:CTM) signed two binding offtake agreements and secured US$40 million of strategic equity from Glencore and CNGR, which it says advances funding for its Jaguar Nickel Project in Brazil ahead of a Final Investment Decision.

A subsidiary of CNGR Advanced Material Co. Ltd and Glencore AG have each agreed to take a minimum 100,000 dry metric tonnes of high-grade Jaguar nickel concentrate over a 5-year contract period. Together with the existing Glencore offtake agreement, this takes nickel concentrate under contract to 100% of production over the first 5 years of operations, which the company says equates to approximately 22,500 tonnes per annum of nickel. Pricing is referenced to the LME Cash Settlement nickel price, with variable nickel payability, and payabilities have also been agreed for copper and cobalt by-products. Glencore and CNGR will each invest US$20 million at A$0.425 per share, a 5% premium to the 20-Day VWAP. Tranche 1 of US$12.5 million each follows execution of the agreements, with 41,903,070 shares to be issued to Glencore. Tranche 2 of US$7.5 million each requires Centaurus shareholder approval and a Final Investment Decision, with a sunset date of 31 January 2027.

CNGR's investment is subject to Chinese Outbound Direct Investment approval. The senior debt financing process is not yet complete, and no Final Investment Decision has been made.