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CUDECO'S (ASX:CDU) Rocklands project has been given a shot in the arm by one of its major shareholders, after inking a deal for the offtake of all native copper.
The term sheet between the Gold Coast-based miner and China Oceanwide International Investment Co has a payable value of no less than 96.5 per cent of contained copper at Cloncurry.
CuDeco managing director Dianmin Chen says the agreement will provide financial security for the company's flagship project.
"It is another key undertaking as we further progress the delivery of cash flow from Rocklands for the benefit of all shareholders," Chen says.
"After barely a month as managing director, I am pleased to see the commitment to successful plant commissioning by all those involved with Rocklands.
"This has been backed by the implementation of a new, performance-driven culture as we transition from development to production."
The mine's crushing circuit is now fully commissioned, with the exception of a water pipe that failed during wet commissioning tests. The pipe is expected to be ready for pressurisation this week.
The ore feed process is ready to enter the ball mill, which is 40 per cent charged with load tests to increase to 100 per cent.
CuDeco expects the first sulphide copper concentrate to be produced next month, and the first shipment of copper concentrate in September or October.
"I am excited about the company entering into the production stage at Rocklands and we will provide more updates for the market as we ramp up the processing rates," Chen says.
"This is a key period in CuDeco's corporate history as we deliver on the potential of our project to generate increased shareholder value and benefits for all stakeholders."
The formal documentation for the offtake agreement is expected to be finalised later this month.
Related CuDeco news:
- CuDeco freefalls after 10 months in wilderness
- CuDeco's share-trading drought draws to an end
- Gold Coast Top Companies
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