Centaurus Metals has completed CNGR’s US$12.5 million first investment, taking cash received for the Jaguar Nickel Project to US$25 million alongside Glencore’s placement. The second tranche remains conditional on shareholder approval, a final investment decision and, for CNGR, Chinese regulatory clearance.
- 41.86 million shares issued to CNGR at A$0.425 each
- US$25 million received from the combined US$40 million strategic funding package
- Five-year nickel concentrate offtake agreements secured with CNGR and Glencore
- Second US$7.5 million tranches remain subject to multiple conditions
- Senior debt facility negotiations are described as well advanced but incomplete
CNGR completes first Jaguar investment
Centaurus Metals (ASX:CTM; OTCQX: CTTZF) has received the second half of the initial strategic funding for its Jaguar Nickel Project, issuing 41,861,322 shares to a wholly owned CNGR Advanced Material 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’ 20-day VWAP before the offtake and subscription agreements were signed. The placement follows the first Glencore placement, which was completed at the same price and brought in a further A$17.8 million.
US$25 million now received for Jaguar
Together, CNGR and Glencore have now delivered US$25 million of a proposed US$40 million strategic investment into Jaguar. Both groups have also signed five-year offtake agreements for nickel concentrate from the Brazilian project, after the five-year offtake agreements were announced as part of the wider funding and sales arrangement.
That combination gives Centaurus cash already received and long-term customers identified for planned Jaguar production. The company said the strategic investment forms part of the project’s overall funding package, while managing director Darren Gordon said progress on a senior debt facility was “well advanced”. No debt facility has been completed in this announcement.
Second tranche still depends on approvals
The remaining US$7.5 million investment from each party is not yet locked in. Centaurus must first secure shareholder approval and make a final investment decision on Jaguar’s development; CNGR’s second tranche additionally requires Chinese Outbound Direct Investment approval.
The completed first tranche strengthens the project’s funding position, but the development financing process still has several gates to clear before the full US$40 million is received. The next material markers are the shareholder vote, the final investment decision, CNGR’s ODI approval and completion of the senior debt facility.
Bottom Line?
The first US$25 million is now in hand, but Jaguar’s financing case still turns on the second tranche, debt completion and a final investment decision.
Questions in the middle?
- When will Centaurus put the second-tranche resolutions to shareholders?
- Can the senior debt facility be completed on terms that support Jaguar’s full funding package?
- Will CNGR secure ODI approval and proceed with its remaining US$7.5 million investment?