Finders secures off‐take partner for Wetar Copper Project

By Romel S. Gurky

Australia listed firm Finders Resources said it had signed an agreement whereby it will enter into an off‐take agreement with Standard Bank Plc for up to 60 per cent of all copper cathode produced from the Wetar copper project.

The company said in a press statement that the agreement further develops an important and emerging partnership between Finders and Standard Bank.

Under terms of the agreement, Standard Bank will subscribe for US$5.5 million of equity in Finders in exchange for the right to buy up to 40 per cent of the Wetar copper off‐take.

The funds will be used as part of the Wetar copper project financing in support of near‐term capital expenditure requirements. This equity investment will be in the form of a mandatory convertible note which will convert into ordinary shares in Finders at the end of six years.

However, Standard Bank may elect to convert into ordinary shares in Finders prior to that date. The conversion price for the first tranche is 42.7 cents per share. This investment has been structured as a mandatory convertible note, however commercially and for accounting purposes it can be treated as ordinary equity.

Also, under terms of the agreement, Standard Bank will pay prevailing market prices for the copper cathode produced at the Wetar copper project for the life of the mine. Subject to certain conditions, Standard Bank has also committed to subscribe for a further tranche of US$5.5 million of equity on the same terms as other investors in an equity raising to be launched to fund the construction of the Wetar copper project, at which time Standard Bank will secure rights to a further 20 per cent of the Wetar copper off‐take.

Editing by Benget Besalicto Tnb.