Australia's Develop Global bags $400 million funding, supply deals from Trafigura
Australian diversified miner Develop Global said on Wednesday it had secured a $400-million financing package and supply agreements from commodities trader Trafigura for its Sulphur Springs copper-zinc and Pioneer Dome lithium projects.
The financing package, consisting of a $350-million loan facility and a $50-million warrant package, will help the company fund development of the two projects in Western Australia.
The financing arrangement will also be used to refinance the existing Woodlawn facility.
Under the offtake agreements, Trafigura will receive copper and zinc concentrates from Sulphur Springs and lithium ore products from Pioneer Dome.
Develop Global approved final investment decisions for both the projects, committing capital expenditure of A$450-million ($316.2-million) and A$40-million to Sulphur Springs and Pioneer Dome, respectively.
Shares of Develop Global rose as much as 4.1% to A$6.65, their highest level since June 3. The broader S&P/ASX 200
benchmark index was up 0.6%.
