True North Copper Limited (ASX:TNC) (True North, TNC or the Company) is pleased to announce it has signed binding offtake and toll-milling agreements with one of the world’s largest natural resource companies, Glencore International AG (Glencore) for its Cloncurry Copper Project (CCP) in Queensland (see Figure 1).
Toll-milling services, up to 1 million tonnes of ore per year for the CCP’s Life of Mine (LoM).
Mutually agreed ore delivery and processing schedules.Agreement in place ahead of mining and processing of sulphide ores.Offtake agreement sales price for the metals contained in the copper concentrate in line with the market commercial terms for copper concentrate, including adjustments for penalties, treatment and refining charges and a freight credit.Toll-milling agreement contains customary terms and conditions for a contract of this nature, including:agreed tolling charge, which reflects current market rates for copper ore processing in Cloncurry, Queensland; andagreed process for assaying, weighing, sampling and moisture determination in relation to copper concentrate produced.
Key benefits to TNC and the Cloncurry Copper Project:
Concentrate processed at the nearby Mt Isa Smelter (approx. 120km by major arterial road network), providing greater freight certainty and economic and logistics value (see Figure 2).TNC will be entitled to claim 20% Queensland State Royalty discount for all material processed through the Mt Isa Smelter.Provides certainty of concentrate sales for the CCP.
True North Copper Managing Director, Marty Costello said:
“Executing binding offtake and toll-milling agreements with an industry major such as Glencore is a significant milestone for TNC and our Cloncurry Copper Project. Glencore has agreed to purchase 100% of the copper metal produced at CCP and we can process up to one million tonnes of ore, each year, through the nearby Processing Plant near Cloncurry.
CCP is fully permitted and TNC is on track to soon be in production for copper with CCP located in a Tier One jurisdiction. TNC’s investment thesis since listing last year has only improved, and we are excited to demonstrate this in the weeks and months to come. We’re thrilled to partner with Glencore, recognising our substantial synergies and potential for future collaborations. We are also incredibly proud this partnership will deliver economic benefits to north-west Queensland. We aim to create as many jobs and opportunities as possible for the people, businesses and communities of north-west Queensland.”
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