True North Copper (ASX:TNC) has signed binding offtake and toll-milling agreements with global diversified natural resource company Glencore (LON:GLEN) for its Cloncurry Copper Project.
True North Copper Managing Director Marty Costello says executing the agreements with an industry major such as Glencore is a significant milestone for True North Copper.
Glencore has agreed to purchase 100% of the copper metal produced at the project, where True North can process up to 1 million tonnes of ore each year through a nearby processing plant.
“CCP is fully permitted and TNC is on track to soon be in production for copper with CCP located in a tier-one jurisdiction. TNC’s investment thesis since listing last year has only improved, and we are excited to demonstrate this in the weeks and months to come.
We’re thrilled to partner with Glencore, recognising our substantial synergies and potential for future collaborations. We are also incredibly proud this partnership will deliver economic benefits to north-west Queensland. We aim to create as many jobs and opportunities as possible for the people, businesses, and communities of north-west Queensland.”
Key terms include offtake agreement sales price for the metals contained in the copper concentrate in line with the market commercial terms for copper concentrate, including adjustments for penalties; treatment and refining charges; and a freight credit.
The toll-milling agreement contains customary terms and conditions for a contract of this nature, including agreed tolling charge, which reflects current market rates for copper ore processing in Cloncurry, Queensland; and agreed process for assaying, weighing, sampling and moisture determination in relation to copper concentrate produced.
Last week True North Copper updated the mineral resource at Wallace North, part of its Cloncurry Copper Project, following the completion of an Advanced Grade Control (AGC) drilling and historic core re-assay program.
Re-estimation using results from AGC drilling and re-assayed historic core has resulted in a significant increase from 23% (October 2023) to 90% (January 2024) in indicated resource proportion.
It also resulted in a 300% increase in indicated resources and increase in indicated contained Cu metal of more than 280%, and in indicated gold ounces of over 224% from the October 2023 resource.
Write to Adam Orlando at Mining.com.au
Images: True North
