Australia’s Develop Global has secured a significant A$100-million prepayment/loan facility and offtake agreement with global commodities trader Trafigura for its Woodlawn copper and zinc mine in New South Wales. This pivotal agreement sets the stage for a final investment decision, positioning Woodlawn for production and cash flow by mid-next year.
Develop’s Managing Director, Bill Beament, highlighted the transformative impact of the agreement, stating, “The competitive prepayment/loan facility and offtake agreements are a game-changer for Develop.” He emphasized the favorable terms of the prepayment/loan facility, noting its low interest rate and considerable flexibility. “This reflects a strong vote of confidence in the mine’s quality, its management, and the A$400-million of equity capital invested by Develop and the prior owner,” Beament added.
The offtake agreement further solidifies Woodlawn’s future with enhanced terms compared to those projected in the restart study released earlier in April. According to Beament, the benefits of these agreements are evident in the project’s increased net present value, which has risen from A$658-million to A$728-million.
Under the agreement, Trafigura will provide $65-million (or the equivalent in Australian dollars) in prepayment/loan funding. Alongside Develop’s existing cash reserves of A$41-million and its profitable mining services division, Woodlawn is now fully funded through to production.
The mine plan forecasts Woodlawn to produce an average of 12,000 tonnes per year of copper and 36,000 tonnes per year of zinc metal over an estimated ten-year mine life, totaling 80,000 tonnes of copper and 218,000 tonnes of zinc in payable metal over the project’s lifespan.
