- KGL Resources (KGL) enters into a binding offtake agreement to sell all copper concentrate produced from its Jervois copper project in the NT to Glencore International
- The evergreen agreement has a minimum term of five years from commercial production start-up and KGL says the sale price of the copper concentrate will be volume based and reference the LME cash settlement price for copper, with silver and gold credits
- Jervois is currently in the development phase, however, the sales contract with Glencore is conditional on KGL securing financing for the proposed new mine and commercial production kicking off by the second half of calendar 2025
- The company says a feasibility study on the proposed Jervois development is nearing completion and due to be delivered in Q2 2022
- KGL shares jump 11.7 per cent to 50.3 cents
KGL Resources (KGL) shares have climbed after the company announced it had entered into a binding offtake agreement to sell all copper concentrate produced from its Jervois copper project in the Northern Territory to Glencore International.
The evergreen agreement has a minimum term of five years from commercial production start-up.
Copper concentrate will be transported by KGL to Glencore’s Mount Isa copper smelter.
KGL said the sale price of the copper concentrate will be volume based and reference the LME cash settlement price for copper, with silver and gold credits.
The Jervois project is currently in the development phase, however, the sales contract with Glencore is conditional on KGL securing financing for the proposed new mine and commercial production kicking off in the second half of calendar 2025.
KGL said a feasibility study on the proposed Jervois development was nearing completion and scheduled to be delivered in Q2 2022.
Managing Director Simon Finnis said the agreement was a major milestone for the company.
“It brings certainty to the sales program and Glencore is a well credentialed and bankable counterparty,” he said.
“Having benchmarked pricing in this strong commodity environment is comforting. This agreement is a key component of KGL’s plans to procure funding for the development of Jervois.”
KGL shares were trading 11.7 per cent higher at 50.3 cents at 2:25 pm AEDT.