COPPER 360, a Johannesburg listed miner and development company, announced on Tuesday it had adjusted the terms of a previously announced R200m acquisition of the Nama Copper processing plant from Mazule Resources.
Instead of financing R50m of the acquisition through prepayment of offtake to Mazule, Copper 360 would pay Mazule through three installments of cash from March through to May. The cash would be financed through a new, 10-year offtake agreement with a UK commodity trading company, Fujax UK.
Fujax would pay $7.5m to Copper 360 from April through May representing part of offtake from Nama Copper over the first five years of the 10 year contract.
Jan Nelson, CEO of Copper 360 said in a statement that the Nama Copper plant had exceeded expectations in performance. This is following testing which included wet trials of the plant. Commissioning of the Nama plant would now proceed with the aim of producing 45 tons of copper.
Production will then be ramped up to reach an estimated 230 tons of copper within two months thereafter, said Nelson.
“The Nama Copper Plant has not only met but exceeded our expectations in both in terms of its structural integrity and performance, ergo the acquisition will enhance Copper 360’s operational capabilities and position the company for further growth in production,” said Nelson.
Shares in Copper 360 gained 3.4% on the JSE on Tuesday, but the stock remains under pressure. Year to date it is 32.5% lower and 46% down over the last 12 months.
