LONDON Swiss trader Gerald Metals SA has agreed to provide a $50-million advanced payment facility to Australias Tiger Resources Ltd. in return for the supply of 100,000 tonnes of electrowon copper cathodes beginning in the second quarter of next year.
Tiger will use the facility to fund the completion of its solvent extraction-electrowinning (SX-EW) plant at the Kipoi copper project in the Democratic Republic of the Congo, the company told investors Oct. 17.
After commissioning in the second quarter of 2014, Morges, Switzerland-based Gerald will receive 2,000 tonnes per month under the offtake deal during the first phase of production, and 2,500 tonnes per month after a proposed expansion that will take the plants capacity to 50,000 tonnes per year.
Tiger expects Kipoi, which came online in 2011, to produce 35,000 tonnes of copper in concentrate annually during the first three years of operation, after which it will switch to refined SX-EW production, according to the companys website.
The company is on track to produce 41,000 to 43,000 tonnes of copper in concentrate in 2013, it said earlier this week.
As of the end of the third quarter, Tiger had stockpiled ore containing 115,300 tonnes of copper for use in the SX-EW operation, the company said Oct. 15.
A verison of this article was first published in AMM sister publication Metal Bulletin.