17/10/2013 - 13:01

Tiger launches $US50m offtake deal

17/10/2013 - 13:01

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Tiger Resources has lined up $US50 million in funding towards construction at its Kipoi copper project in the Democratic Republic of Congo under a proposed offtake arrangement with commodity trader Gerald Metals.

Tiger launches $US50m offtake deal
Tiger Resources' Kipoi mine in the Democratic Republic of Congo.

Tiger Resources has lined up $US50 million in funding towards construction at its Kipoi copper project in the Democratic Republic of Congo under a proposed offtake arrangement with commodity trader Gerald Metals.

The agreement is held between US-based Gerald and Société d'Exploitation de Kipoi, the operator of the Kipoi project in which Tiger has a 60 per cent interest.

Under the arrangement, Gerald will provide a $US50 million advance payment in exchange for 100,000 tonnes of copper cathode from the stage two solvent-extraction and electro-winning plant at Kipoi.

The plant is currently under construction and scheduled for commissioning in the second quarter of 2014.

Tiger said the advance payment facility was available to support construction at Kipoi as well as general corporate operations.

The payment will be available for immediate drawdown after satisfaction of customary conditions, with the first of 12 equal monthly repayments due in July next year.

"Strong offers were received from eight leading international copper trading houses who participated in our tender process," Tiger managing director Brad Marwood said.

"This reflects positively on their assessment of Kipoi and its capacity to deliver copper cathodes in the DRC."

Tiger shares gained 4.6 per cent  to 38 cents at 1:00PM WST.

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