YTC strikes $158 million finance deal with Glencore

THE BOURSE WHISPERER: YTC Resources (ASX: YTC) has agreed binding terms with Glencore International for the provision of up to A$155 million in debt and converting note facilities.

Glencore has also subscribed for $2.95 million worth of YTC shares.

The funds have been earmarked for the construction of the Hera and Nymagee projects in the Cobar district of New South Wales.


Massive sulphide mineralisation – Nymagee copper deposit. Source: Company announcement


“YTC is delighted to have reached agreement with Glencore on the funding of the Hera and Nymagee projects,” YTC resources managing director Rimas Kairaitis said in the company’s announcement to the Australian Securities Exchange.

“We believe the terms agreed are attractive to both parties, and provide YTC with funding certainty at a low cost of funds with minimum dilution to YTC shareholders.

“YTC believes Glencore represents a logical and mutually beneficial funding and off-take partner for the Hera and Nymagee projects.

“With their established mining and logistics infrastructure in the Cobar district, YTC believes Glencore shares the YTC vision for a large scale, long life mining precinct around the Hera and Nymagee projects.”

As part of the Transaction YTC and Glencore have agreed to forming a Technical Steering Committee to advise on technical aspects of the Hera and Nymagee projects.

Glencore will also gain a seat on the YTC Board.

YTC said it was convinced having Glencore as a project partner will provide benefits for its shareholders given Glencore’s mining and logistical base in the Cobar district centred on the large CSA copper mine.

The Transaction has already received all internal Glencore approvals, and is subject to several conditions precedent that are considered customary for such a transaction including the parties’ execution of definitive transaction agreements within two months of execution of the binding terms sheet.