Copper Giant secures Denarius as major shareholder, offtake agreement with Trafigura

Copper Giant also entered into a separate definitive agreement with Trafigura, under which Copper Giant will grant Trafigura long-term offtake rights over a portion of the future copper and molybdenum concentrate produced from its Mocoa project, in Colombia.

The financing is for aggregate gross proceeds of C$30.9-million with a lead order from Denarius of C$28.8-million.

Copper Giant president Ian Harris and founder Frank Giustra are also participating in the financing.

"Together, the financing and the offtake bring a cornerstone shareholder, strategic capital from investors committed for the long term, a committed route to market for future concentrate, and the capital to fund and accelerate the next phase of work at Mocoa, beyond the preliminary economic assessment currently underway and toward a construction decision," says Harris.

Notably, the offtake is conditional on completion of the financing.

Copper Giant will issue about 43-million common shares at a price of C$0.72 apiece, of which 40-million will be allocated to Denarius, representing 15.6% of Copper Giant's issued and outstanding shares on closing.

In turn, Trafigura will have the right and obligation to purchase 20% of the copper concentrate and 20% of the molybdenum concentrate produced from the Mocoa project for a period of ten years from the start of commercial production.

In respect of the deals, Copper Giant will appoint Colombian attorney and political strategist Carlos Augusto Suárez Rojas to its board of directors and Denarius CEO Federico Restrepo-Solano to its advisory board.

Harris believes the transaction changes the trajectory of the Mocoa project, with Denarius' investment giving the company the capital to move forward and Trafigura providing a long-term route to global markets. "Together, these partners bring Colombian operating experience, market reach and long-term alignment at a pivotal moment for copper and for Colombia."