Centaurus locks in nickel sales and $40M from Glencore, CNGR for Brazil mine
What's the deal? Centaurus MetalsDealroom has a profile for this one. Try Dealroom → (ASX: CTM) has signed two binding nickel-concentrate offtake agreements for its Jaguar project in Brazil, alongside US$40 million in equity commitments from Glencore and CNGRDealroom has a profile for this one. Try Dealroom →. The two investors will each contribute US$20 million, subscribing for shares at US$0.28 — a 5% premium to the preceding 20-day volume-weighted average price.
Why now? The agreements put all of Jaguar's forecast nickel output for its first five years under contract, materially reducing sales risk ahead of a final investment decision. Combined contracted deliveries represent roughly 22,500t of nickel a year across the mine's first five operating years.
The details: A CNGR subsidiary and Glencore AG will each buy at least 100,000 dry metric tonnes of high-grade concentrate over five years, beginning in the first half of 2029. The two new arrangements carry an estimated combined net sales value of about US$900 million at current prices. Pricing references the London Metal Exchange cash settlement nickel price.
What's the endgame? Centaurus is building a development finance package for Jaguar, combining the equity with senior debt it is now negotiating. The company has also cited a non-binding US$190 million debt letter of intent from Brazil's BNDES.
What could go wrong? Part of the funding stays contingent. The US$40 million is split into two tranches, with CNGR's portion subject to Chinese outbound investment approval and the second tranche depending on shareholder approval and a final investment decision. Those conditions must be met by January 31, 2027, and either buyer can terminate if its first shipment has not occurred by the end of 2029.
The signal: At US$40 million, this ranks among the larger post-IPO equity raises in Australian energy over the past four years — above roughly 91% of comparable deals. It lands as nickel prices have retreated from a May high near US$20,000 to around US$16,500 in late September, in a market still shaped by Indonesia's dominant supply. The deal de-risks a proposed mine; it does not prove the project is fully funded or shielded from price swings.
Read more: in.marketscreener.com
Image credit: Generated with Gemini
