Minto Metals Corp (TSX-V:MNTO) says it has struck a more favourable offtake deal for copper concentrate from its Yukon mine with Japanese trading titan Sumitomo Corporation (SC).
The deal, effective from May 16 this year, extends the existing arrangement between the two parties and means SC will purchase all the copper concentrate produced at the Minto mine for an additional four years based on 50,000 dry metric tonne (dmt) per year of production. The deal continues until the additional 200,000 dmt is produced.
"Minto Metals is pleased to announce an extension to our current relationship and offtake agreement with Sumitomo," said Chris Stewart, CEO of Minto Metals.
"Sumitomo has been a tremendous business partner since the restart of the Minto Mine in 2019 and we look forward to continuing this relationship and providing Sumitomo with our high-grade, quality copper concentrate for an extended period of time."
Alongside the off-take agreement, SC has also agreed to extend its debt facility to $17.5 million, repayable over 48 months or the remaining agreement term.
READ: Minto Metals releases drill results showing potential to expand the copper resource at its Yukon property
"Minto Metals has proven to be a strong, reliable operator and their sustainable practices uphold Sumitmo's long-term values. We look forward to a long, continuing relationship with Minto," said Takeshi Ishimaru, general manager of non-ferrous raw materials department of Sumitomo Corp.
The latter is a leading Fortune 500 global trading and business investment company with 131 locations, 20 of them in Japan. It has a presence in 66 countries and regions. The entire SC Group consists of over 900 companies.
Minto owns and operates the producing Minto mine located in the Minto copper belt of Yukon in Canada, which includes underground mining operations, a processing plant that produces a high-grade copper, gold, and silver concentrate, and supporting infrastructure.
Contact the writer at giles@proactiveinvestors.com