Venturex Signs AU$100 Million Funding, Offtake Deal with Trafigura

Venturex Resources has entered into a debt funding and offtake agreement with Trafigura to develop the Sulphur Springs copper-zinc project.

Venturex Resources (ASX:VXR,OTC Pink:VTEXF) has received a AU$100 million boost from Trafigura to develop the Sulphur Springs copper-zinc project in Western Australia.

The funding, announced this week, comes in the form of a senior debt facility set to span four years. According to Venturex, the company intends to repay the facility by supplying Trafigura with future copper and zinc concentrate produced from Sulphur Springs.

Alongside the funding agreement, the two companies have entered an offtake agreement whereby Trafigura will receive life-of-mine (LOM) production for the first 11 years that Sulphur Springs is in operation. After 11 years, Trafigura will receive 50 percent of annual concentrate produced at the project.

The exception to the freshly inked offtake agreement is Venturex’s previously established agreement with Toho Zinc (TSE:5707). The two companies revised their agreement in March to give Venturex the ability to fund Sulphur Springs through other offtakes.

Toho will receive 280,000 tonnes of zinc in concentrate produced after the first five years of production.

“Sulphur Springs represents one of the very few greenfield development assets in the base metals space globally, and we are extremely pleased to have secured a strategic funding and long-term off-take partner to support our development strategy moving forward,” Venturex Managing Director AJ Saverimutto said in a statement.

“Together with the other expressions of interest we have received from other potential financing groups, we are now confident of being able to finalise a total funding package to allow us to move ahead with development of this substantial new Australian copper-zinc project.”

Venturex released a definitive feasibility study for the project in 2018 that lays out a whopping LOM revenue of AU$2.62 billion. The asset, which has a 1.25 million tonne per year open-pit and underground project base case, is expected to produce 65,000 tonnes of 25 percent copper concentrate per year.

Additionally, Sulphur Springs is set to produce 75,000 tonnes of 50 percent zinc concentrate annually.

The company predicts a post-construction LOM of 10.3 years with a post-tax net present value of AU$310 million and post-tax internal rate of return of 39 percent. Pre-production capital costs are estimated at AU$146 million for a 1.25 million tonne per year processing plant and other infrastructure.

As of Monday (August 5), copper was trading at US$5,646 per tonne on the London Metal Exchange, while zinc was at US$2,319 per tonne.

On the ASX, Venturex shares took a 9.52 percent plunge on Tuesday (August 6) to end the day of trading at AU$0.19.

Don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.

When Will Australia Legalise Recreational Cannabis?

Recreational cannabis remains illegal in all Australia’s states and territories with the exception of the Australian Capital Territory (ACT). But could that change in the future?

So far there are no clear indicators as to when or if Australia could legalise recreational cannabis, but attitudes seem to be changing. Public support is growing, and there’s even some political acceptance.

Read on to learn more about when Australia may legalise recreational cannabis.

Keep reading... Show less

Data Review Enhances Prospectivity at Galan’s Greenbushes South Lithium Project

Highlights:

  • CSIRO’s historical datasets show prospectivity for Galan’s Greenbushes South Lithium Project
  • Historical laterite geochemistry data collected prior to mining at Greenbushes
  • Elevated abundances of pathfinder elements display a well-defined anomaly adjacent to Greenbushes South
  • Dispersion of elements into the laterite profiles include arsenic, tantalum, tin and antimony among others
  • Galan to commence sampling and mapping at Greenbushes South next month

Galan Lithium Limited (ASX: GLN) (Galan or the Company) is pleased to announce that it has completed a review of historical CSIRO data which enhances the prospectivity of its Greenbushes South Lithium project.

Keep reading... Show less

Data Review Enhances Prospectivity at Galan’s Greenbushes South Lithium Project

Highlights:

  • CSIRO’s historical datasets show prospectivity for Galan’s Greenbushes South Lithium Project
  • Historical laterite geochemistry data collected prior to mining at Greenbushes
  • Elevated abundances of pathfinder elements display a well-defined anomaly adjacent to Greenbushes South
  • Dispersion of elements into the laterite profiles include arsenic, tantalum, tin and antimony among others
  • Galan to commence sampling and mapping at Greenbushes South next month

Galan Lithium Limited (ASX: GLN) (Galan or the Company) is pleased to announce that it has completed a review of historical CSIRO data which enhances the prospectivity of its Greenbushes South Lithium project.

Keep reading... Show less

AIS Resources’ Australian Yalgogrin Gold Project’s first drill hole returns gold intercepts averaging 1.5g/t over 87 meters including 0.9 meters at 9.3 g/t

A.I.S. Resources Limited ( TSX: AIS, OTCQB: AISSF ) (the “Company” or “AIS) reports that the assay analysis from YDD1 at Neighbour’s Farm historic mine workings, the first diamond drill hole at its Yalgogrin Gold Project, NSW, Australia has been completed by SGS Australia. Extensive gold mineralisation was intersected from 58m through to the end of hole at 162.3m with gold mineralisation remaining open at depth and returning gold Intercepts over 87m averaging 1.5gt. The best individual grades returned up to 9.3 gt Au that are supported by consistent mineralisation hosted within the altered rock mass.

A summary of the intervals and average assays is set out below from the top of the core:

Keep reading... Show less

Resolution Minerals Ltd Drilling Program at Sunrise Gold Prospect Completed

Adelaide, Australia (ABN Newswire) – Resolution Minerals Ltd (ASX:RML) (FRA:NC3) is pleased to announce that it has completed the Company’s first drilling program on the Sunrise Gold Prospect at the 64North Project in Alaska. Drilling was conducted along an existing access road, targeting outcropping granite hosted mineralisation, analogous in style to Kinross’s Fort Knox Gold Mine, which is one of Alaska’s most profitable mines. The Sunrise Prospect was identified in 2020 by a RML trenching program and is located less than 5km from Northern Star’s operating Pogo Gold Mine.

Summary

– A 1400m long “fence line” of 27 shallow RAB drill holes designed to test outcropping mineralisation at the Sunrise Prospect has been completed.

Keep reading... Show less

Top News

Related News