Centaurus Metals secures US$40M investment deal

Centaurus Metals (ASX:CTM) has secured binding off-take agreements and a combined US$40 million equity investment from Glencore AG and CNGR Advanced Material to fund its Jaguar Nickel Project in Brazil.

The new five-year contracts guarantee supply commitments of at least 100,000 dry metric tonnes of high-grade nickel concentrate to each partner, fully contracting 100% of the project's planned output for its first five years of operations.

"The new off-take agreements and US$40 million strategic investment represent a strong endorsement of the Jaguar Project and the quality of the work already undertaken on the Project by the Centaurus team," said Centaurus Metals Management.

Under the agreement terms, Glencore and CNGR will each contribute US$20 million in strategic equity while purchasing any excess output above the minimum contracted annual volumes on an alternating basis.

The company stated that the strategic funding package significantly strengthens its capital structure as it progresses senior debt financing ahead of a final investment decision.

Following the announcement, the Centaurus Metals share price was unchanged at $0.38.

The Jaguar Nickel Project is expected to produce approximately 22,500 tonnes of nickel per annum over its initial operating period, with pricing benchmarked against the London Metal Exchange Cash Settlement nickel price.