Centaurus turns Glencore Jaguar commitment into cash

Glencore completes first Jaguar investment

Centaurus Metals (ASX:CTM) has converted part of its Jaguar nickel project funding plan into cash, issuing 41,903,070 fully paid shares to a Glencore subsidiary for US$12.5 million, or A$17.8 million. The shares were issued at A$0.425 each, a 5% premium to Centaurus’s 20-day VWAP before the offtake and subscription agreements were signed.

The placement is the first tranche of Glencore’s proposed US$20 million strategic investment. It gives Centaurus a completed equity contribution from one of the world’s major commodities groups, while leaving the second half of Glencore’s commitment subject to further conditions.

CNGR tranche to add to US$40 million package

A wholly owned subsidiary of CNGR Advanced Material has signed a separate US$20 million subscription agreement at the same A$0.425 price. CNGR’s first-tranche shares had not yet been issued when Centaurus released the announcement, but the company said that issue was expected in the coming days.

The two investments form part of the US$40 million Jaguar funding commitment, announced alongside five-year offtake agreements with Glencore and CNGR. Centaurus said both strategic investors had also executed five-year offtake agreements for Jaguar, although this announcement does not disclose volumes, pricing or other commercial terms.

Second tranches still depend on project approvals

The remaining US$7.5 million from each investor is not yet committed unconditionally. Centaurus must first secure shareholder approval at a general meeting and make a Final Investment Decision on Jaguar’s development. CNGR’s second-tranche investment also requires Chinese outbound direct investment approval.

That leaves the completed Glencore issue as a meaningful funding milestone, but not the end of the financing process. Centaurus has said the combined US$40 million will contribute to Jaguar’s overall funding package; the announcement does not state the project’s total funding requirement or confirm that the package is complete. The immediate test is whether CNGR’s first tranche follows quickly, and whether the remaining approvals can clear the path to a development decision.