Copper Giant Resources (TSX-V:CGNT) has announced a strategic equity investment by Denarius Metals (CBOE:DMET) for C$31 million ($31.40 million) through a non-brokered private placement.
The strategic financing will see Copper Giant issuing 43,055,550 common shares at C$0.72 per share to Denarius, representing 15.6% of the company’s issued and outstanding shares.
Copper Giant Founder Frank Giustra and President & CEO Ian Harris have confirmed that they will also participate in the financing, with Denarius, Giustra, and Harris agreeing to enter into a two-year lock-up arrangement in connection with the financing.
Copper Giant has also announced a long-term offtake agreement with Trafigura, granting them the right and obligation to purchase 20% of copper concentrate and 20% of molybdenum concentrate produced from Copper Giant’s Mocoa Project.
The offtake agreement spans 20 years from the commencement of commercial production and was entered into on arm’s-length market terms.
Copper Giant has also announced that Carlos Augusto Suárez Rojas is to be appointed to its board of directors, with Denarius CEO Federico Restrepo-Solano to be appointed to the advisory board.
President and CEO Ian Harris says that the transaction is materially significant for the Mocoa Project.
“Denarius’ investment gives us the capital to move through the PEA [preliminary economic assessment] and accelerate the next phase toward a construction decision, while Trafigura provides a long-term route to global markets,” Harris adds.
“Together, these partners bring Colombian operating experience, market reach, and long-term alignment at a pivotal moment for copper and for Colombia.”
Denarius Metals is a junior mining company focused on acquiring, exploring, developing, and operating precious metals and polymetallic projects in Colombia and Spain.
Copper Giant is focused on advancing ‘high-quality’ copper projects responsibly with a focus on the Mocoa Project in Colombia.
Write to Amy Rotman at Mining.com.au
Images: Copper Giant
