- Executed agreement with Trafigura for US$50 million
- Full US$50 million prepaid and available immediately
- Remaining capital required for the Kapulo project now secured
- Prepayment terms provide endorsement of Mawson West’s strategy and assets
- Enables next growth step for Mawson WestPerth, Australia – 16 April 2014 – Mawson West Limited (TSX: MWE) (“Mawson West” or “the Company”) is pleased to announce the Company, through its 90% owned subsidiary Anvil Mining Congo SARL, has signed an offtake agreement with Trafigura Pte Ltd (“Trafigura”), a market leader in the global commodities industry, to sell 100% of the copper concentrate produced at the Dikulushi and Kapulo mines for a period of 48 months from the commencement of commercial production at Kapulo. As part of the offtake arrangements, Trafigura has provided Mawson West with a facility of US$50 million, to be prepaid to the Company immediately.
US$50 Million Prepayment
Mawson West Chief Executive Bruce McFadzean said:
“Completion of the offtake agreement and funding with Trafigura for our production from Dikulushi and Kapulo is a key milestone for Mawson West and provides a strong endorsement of our strategy and assets in the Democratic Republic of Congo. The prepayment of US$50 million means the remaining capital expenditure required for the finalisation of development at the Kapulo project is now secured. With a strong balance sheet, underground production currently ramping up at Dikulushi and final development funding now secured for Kapulo, 2014 is poised to be another exciting year for Mawson West.”
With a forecast production rate of ~20,000 tonnes of contained copper per annum and a current six year mine life, with potential for further increases after the inclusion of the Safari deposit, Kapulo is the next step in Mawson West’s growth strategy.
To date, a total of ~US$77 million of capital has be spent at Kapulo with the Company having completed all civil works, installation of ROM bin, ROM feeder, crushers, screen deck, ball mills, coarse ore tunnel and the erection of a flotation circuit building. Having secured the required final US$50 million of funding from Trafigura, Mawson West is now in a position to complete the development of Kapulo with commissioning expected to commence in Q4 2014.
Mawson West will host a conference call to discuss today’s announcement on April 17, 2014 at 10.00am (North American Eastern Standard Time) (3.00pm London; 10.00pm Perth). Further details of the call are detailed below.
Interested parties may access the conference call by using the following dial-in numbers:
For further information please contact:
Chief Executive Officer and Managing Director Telephone: +61 8 9485 9800
MAGNUS Investor Relations Telephone: +61 2 8999 1010
Mark Di Silvio
Chief Financial Officer
Telephone: +61 8 9485 9800
Roth Investor Relations Inc. Telephone: +1 732 792 2200 Email: email@example.com