Mawson West Secures US$50 Million Prepayment and Offtake Agreement
April 16 2014 - 7:33AM
Marketwired Canada
Highlights:
-- 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 West
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.
Key Terms
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US$50 Million Prepayment
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- Available for immediate draw down
- Competitive facility fee
- Competitive interest margin
- Eight repayment instalments, commencing 31 March 2015
- No hedging conditions
- No equity based payments
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Offtake Agreement
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- 4 year term to December 2018
- Standard industry payable metal terms
- International benchmark treatment and refining charges
- Competitive transport charges with annual reviews
- 95% provisional payment, 3 days following delivery to bonded warehouse in
Nchelenge, Zambia
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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."
Kapulo Overview
With a forecast production rate of approx. 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 approx. 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.
Conference Call
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:
-- Canada 1866 307 0658
-- United States 1866 307 0659
-- United Kingdom 0808 238 9067
-- Australia 1800 153 721
-- New Zealand 0800 442 709
-- International Toll 612 8212 8333
Participant PIN Code: 682436#
Dial-in access details for other countries can be obtained from the below web
address: http://www.arkadin.com/beamon/ITFS/ANZ_Jan_2013.pdf.
Please connect approximately 10 minutes prior to the beginning of the call.
A recorded playback of the conference call can be accessed from the below web
address on Tuesday, April 22, 2014:
http://www.mawsonwest.com/irm/content/webcasts.aspx?RID=317.
About Mawson West
Mawson West is a copper and silver-focused resource company listed on the
Toronto Stock Exchange
(TSX) and based in Perth, Australia.
The Company's two key projects are the Dikulushi copper-silver mine and the
Kapulo copper mine located in the Katanga province in South Eastern Democratic
Republic of Congo (DRC). Mawson West also continues to focus on exploring
multiple prospective targets located within its significant land holding of
approximately 7,300km2 in the DRC's rich copper belt.
FOR FURTHER INFORMATION PLEASE CONTACT:
Mawson West Limited
Bruce McFadzean
Chief Executive Officer and Managing Director
+61 8 9485 9800
bmcfadzean@mawsonwest.com
Mawson West Limited
Mark Di Silvio
Chief Financial Officer
+61 8 9485 9800
mdisilvio@mawsonwest.com
www.mawsonwest.com
MAGNUS Investor Relations
Kusal Meemeduma
+61 2 8999 1010
kmeemeduma@magnus.net.au
Roth Investor Relations Inc.
Michelle Roth
+1 732 792 2200
michelleroth@rothir.com