Trafigura has entered into a $350m (S$450.64m) loan facility agreement to support Develop Global’s two new mining projects in Western Australia (WA).
The loan will fund the development of the Sulphur Springs copper-silver-zinc project and the Pioneer Dome Lithium Project
Both are expected to produce critical industrial and battery metals. In addition to the loan, Trafigura and Develop have signed binding offtake agreements that give Trafigura rights to purchase all of the available output from both projects for a specified duration. The arrangement also includes warrants which, if exercised, offer Develop the possibility of securing up to an additional $50m in funding.
The agreement also involves Trafigura refinancing an existing loan attached to Develop’s Woodlawn copper-zinc-lead operation. In addition, both companies will consider other collaborative opportunities aimed at furthering Develop’s expansion plans. Following the completion of the financing and offtake arrangements, Develop has made final investment decisions on the two projects, advancing from operating a single mine to managing a broader portfolio.