US global commodities trading company Sempra Metals & Concentrates Corp, is to invest $2 million in Perth-based Tectonic Resources NL, with a view to securing an off-take agreement for copper concentrate from Tectonic Resources' Phillips River gold project in Ravensthorpe, Western Australia.
Tectonic Resources is to issue 10 million shares at 20 cents to Sempra Metals, and 5 million options with a strike price of 35 cents expiring in three years time. Sempra Metals will also have first right of refusal over an offtake agreement for copper concentrate from the Phillips River Gold Project.
Tectonic Resources managing director Steve Norregaard said: "For such a significant commodities trading house to take a long-term position in Tectonic Resources is a tremendous vote of confidence, both in our company and specifically in the Phillips River Gold Project.
"Sempra have been looking to formalise a working relationship with Tectonic for some time and this transaction achieves that outcome while at the same time strengthening the company's balance sheet and share register."
Sempra Metals & Concentrates Corp is a part of the Sempra Metals Group, which is a significant global investor specialising in non-ferrous metals, precious metals and plastics. It is owned by the US-based energy services company Sempra Energy, a Fortune 500 company.
Tectonic Resources is a WA-based resources company with an established, strategic position in the Ravensthorpe area including the Phillips River Gold Project as well as the recently closed RAV 8 Nickel Mine, which produced nickel sulphide concentrate. The company is also a joint venture partner in the Burnakura Gold project, which went into production last November.
