- RTG Mining (TSX:RTG) associate company, Mt. Labo, signed an offtake and finance agreement with Glencore to fund stage-1 development of its high-grade Mabilo copper and gold project in the Philippines
- Glencore is a top global natural resource company involved in the production of more than 60 commodities
- RTG is a miner and explorer focused on gold and copper properties in the Philippines
- RTG Mining stock has given back 33.33 per cent year-over-year and 60 per cent since 2020
RTG Mining (TSX:RTG) associate company, Mt. Labo, signed an offtake and finance agreement with Glencore to fund stage-1 development of its high-grade Mabilo copper and gold project in the Philippines.
Glencore is a top global natural resource company involved in the production of more than 60 commodities essential to everyday life, including copper. The company mines and processes copper ore in Africa, Australia, South America, Canada and Kazakhstan and smelts and refines it around the world, including at the majority-controlled Philippine Associated Smelting and Refining (PASAR) smelter and the wholly controlled Mount Isa copper smelter in North Queensland.
Key term sheet provisions
(Source: RTG Mining)
RTG expects to collect approximately 50 per cent of cashflow from stage 1 based on current commodity prices, including early repayment of US$26 million in debt owed by Mt. Labo to RTG, a 2 per cent net smelter return royalty on Mabilo’s gross revenue and 40 per cent of net profits.
Key metrics for the Mabilo copper and gold project
(Source: RTG Mining)
Mt. Labo believes additional drilling will deliver extensions along strike and at depth, shedding light on a potential porphyry source to scale the project. The associate company has designed the stage-2 plant on a compartmentalized basis for flexible expansion.
Leadership insights
“This is a very important and exciting step in the start-up of the high-grade Mabilo copper-gold project and signals the transition of RTG from explorer and developer to producer,” Justine Magee, RTG Mining’s chief executive officer, said in a statement. “We are delighted to be partnering with Glencore to advance Mabilo, and the favourable finance and offtake terms also come with a strong counterparty and group that have been both active and successful themselves in the Philippines via the PASAR refinery. We are very confident our partnership with Glencore will add significant value to Mt. Labo’s collective shareholder bases and the Philippines as a whole.”
“Stage 1 of the project is low-risk with only nominal upfront capital, but generates very strong cashflow quite quickly, as there is no processing required – you simply mine the products, crush and then ship,” Magee added. “With a reserve grade of 21 per cent copper, demand for the product is strong and it should allow us to internally fund our equity contribution for stage 2, which produces a high-grade copper-gold concentrate, and commit to drilling to identify the porphyry source, which could be a game-changer for the scale and value of the project. As we enter this important phase, RTG remains very well positioned to capitalize on consensus views of strong and improving forecasts for copper and gold prices. We believe this is a key milestone that will clearly demonstrate the value of the Mabilo project, and we are excited to be moving the project through to operations.”
About RTG Mining
RTG is a miner and explorer ramping up to production at its Mabilo copper and gold project in the Philippines. It also holds a prospective early-stage portfolio that includes exposure to Kyrgyzstan. The company’s management team has developed seven mines across five countries, including the Masbate gold mine in the Philippines. Notable institutional investors include Equinox Partners and Franklin Templeton.
RTG Mining stock (TSX:RTG) last traded at C$0.02 per share. The stock has given back 33.33 per cent year-over-year and 60 per cent since 2020.
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