RTG Mining has locked in a US$30 million financing facility with Glencore to fund the initial stage of its high-grade Mabilo Copper and Gold Project in the Philippines, while advancing exploration and development at its Chanach and Panguna projects.
- US$30M three-tranche financing secured from Glencore for Mabilo Stage 1 development
- Stage 1 Direct Shipping Operation targets 25,200 tonnes copper and 52,900 ounces gold
- 5,000m drilling program planned at high-grade Chanach Gold and Copper Project in Kyrgyz Republic
- Placement raised A$19.5M to support project development and corporate activities
- Progress on land acquisition, permitting, and team hiring at Mabilo; engagement ongoing at Panguna
Strategic Financing Milestone for Mabilo Project
RTG Mining Inc. has achieved a pivotal funding milestone by securing a binding term sheet with global commodities giant Glencore International AG to finance 100% of the capital expenditure for Stage 1 of the Mabilo Copper and Gold Project in the Philippines. The US$30 million facility, structured in three tranches, provides RTG with the financial flexibility to commence a Direct Shipping Operation (DSO) targeting the extraction of 0.104 million tonnes of supergene chalcocite ore averaging 20.7% copper. This initial phase is expected to yield approximately 25,200 tonnes of copper alongside 52,900 ounces of gold from associated products.
The financing arrangement includes an early tranche of US$3.5 million to facilitate land acquisition, followed by US$21.5 million for development and working capital, and a final US$5 million tranche subject to mutual consent. This strategic partnership with Glencore not only underpins the near-term development of Mabilo but also positions RTG to capitalize on robust copper and gold market prices.
Operational Progress and Development Plans
RTG’s joint venture with TVI Resource Development (Phils) Inc. continues to advance steadily, with significant progress in land acquisition, permitting, particularly for coconut tree clearing, and the establishment of a development team. The company is on track to finalize surface rights and environmental approvals, critical steps before committing fully to Stage 1 development.
Following the DSO start-up, RTG anticipates early repayment of approximately US$27 million in loans to the company, enhancing its cash flow profile. The 2% Net Smelter Royalty and 40% share of net profits from Mt. Labo are expected to generate strong cash inflows, which will support the equity contribution for Stage 2, involving the construction and operation of a 1.35 million tonnes per annum processing plant.
Exploration Upside at Chanach Project
In the Kyrgyz Republic, RTG holds a 90% interest in the Chanach Gold and Copper Project, which boasts a substantial inferred mineral resource of 2.95 million tonnes at 5.11 g/t gold and 17.23 million tonnes at 0.37% copper. The project’s geological setting within the prolific Tien Shan metallogenic belt suggests significant exploration potential, with only 5% of the strike length tested to date.
A 5,000-metre drilling program is slated to commence in early May, targeting anomalies identified through recent 2D and 3D induced polarization surveys. These include classic porphyry signatures with strong chargeable and resistive anomalies, indicative of sulphide mineralization. Preparations during the quarter included contracting drilling and earthworks companies and laboratories for sample analysis, setting the stage for an active field season.
Advancing the Panguna Redevelopment Opportunity
RTG remains engaged as the nominated development partner in the joint venture with the Special Mining Lease Osikaiyang Landowners Association and Central Exploration Pty Ltd for the redevelopment of the Panguna Copper-Gold Project in Bougainville, Papua New Guinea. The project is a landowner-led initiative with strong local governance structures, and RTG continues to liaise closely with the Autonomous Bougainville Government and the Toroama Government to align development plans with regional aspirations.
Capital Raising and Financial Position
To support its ambitious development and exploration agenda, RTG completed a placement raising approximately A$19.5 million at A$0.025 per share, with the first tranche raising A$4.2 million already completed. The company is seeking shareholder approval for the second tranche at its upcoming AGM. Cash and liquid assets stood at A$0.7 million at quarter-end, supplemented by the placement proceeds, positioning RTG with sufficient liquidity to advance its projects.
Payments to related parties during the quarter amounted to US$137,334, covering directors’ remuneration. The company’s operational cash outflows reflect ongoing development and exploration activities, with a net cash used in operating activities of approximately US$504,000 for the quarter.
Looking Ahead
RTG’s immediate focus is on completing land acquisitions and permitting at Mabilo to enable drawdown of the Glencore facility and commence Stage 1 development. Concurrently, the company will initiate the Chanach drilling program and continue engagement on the Panguna project. These coordinated efforts across multiple jurisdictions underscore RTG’s strategy to transition from exploration to production and cash flow generation.
Bottom Line?
With financing secured and drilling imminent, RTG Mining is poised to transform its high-grade assets into production catalysts.
Questions in the middle?
- Will RTG meet its land acquisition and permitting deadlines to unlock Glencore funding on schedule?
- What impact will the initial DSO production have on RTG’s cash flow and debt repayment timeline?
- How might drilling results from Chanach reshape RTG’s exploration and development priorities?