Centaurus Locks In Jaguar Nickel Sales and US$40 Million Strategic Funding

Jaguar Production Reaches Full Five-Year Offtake Coverage

Centaurus Metals (ASX:CTM; OTCQX:CTTZF) has removed one of the largest commercial uncertainties around its Jaguar Nickel Project in Brazil, signing binding five-year offtake agreements with Glencore and CNGR for a combined minimum 200,000 dry metric tonnes of high-grade nickel concentrate.

Each agreement covers at least 20,000 tonnes of concentrate a year from the first half of 2029, equivalent to roughly 25% of forecast annual production under the contracts. Alongside Glencore’s existing 20,000-tonne-per-year agreement, the new deals take contracted output to 100% of forecast nickel concentrate production for Jaguar’s first five years, containing approximately 22,500 tonnes of nickel annually. The parties will also buy additional production above the 60,000 tonnes per year already covered, with parcels alternating between CNGR and Glencore; that extra volume is estimated at 60,000 tonnes over the contract period.

Glencore and CNGR Commit US$40 Million in Equity

The commercial commitment comes with fresh project funding. Glencore and CNGR have each agreed to invest US$20 million in Centaurus at A$0.425 per share, described by the company as a 5% premium to its 20-day volume-weighted average price before the agreements were signed.

The first tranche is US$12.5 million from each investor. Glencore’s portion is set to comprise 41,903,070 shares using an AUD:USD exchange rate of 0.7019, while CNGR’s issue remains subject to Chinese outbound direct investment approval. The remaining US$7.5 million from each investor requires Centaurus shareholder approval and a Final Investment Decision, with those conditions subject to a 31 January 2027 sunset date.

Funding Package Moves Beyond Offtake Negotiations

The announcement gives Centaurus a more substantial equity base as it works to close the senior debt component of Jaguar’s funding package. The debt process was described as well advanced, but the company did not disclose final debt terms, the remaining funding requirement or a date for the investment decision. The update follows Glencore’s binding offtake reaffirmation, which had preserved the original commercial agreement while additional offtake and funding discussions continued.

Pricing under both new contracts will reference the London Metal Exchange cash settlement nickel price, with variable nickel payability linked to the prevailing nickel price. Payabilities have also been agreed for copper and cobalt by-products. At current nickel prices, Centaurus estimates the material covered by the two new agreements has a net sales value of approximately US$900 million over five years, though that figure is explicitly dependent on market prices and is not a fixed revenue commitment.

First Shipment Deadline Creates a Clear Delivery Test

Glencore and CNGR can terminate their respective offtake agreements if first nickel concentrate has not been shipped to them by the end of 2029. That provision leaves construction, financing and commissioning execution as the next decisive steps, rather than simply securing customers for the planned output.

Centaurus said the next few weeks would be pivotal as it seeks to complete the remaining debt and equity elements required for a Final Investment Decision. The immediate tests are CNGR’s regulatory approval, completion of the initial equity subscriptions, shareholder approval for the second tranche and evidence that the senior debt process has converted into committed financing.