Polymetals Resources Ltd (ASX:POL) has entered into a binding term sheet with global trading firm Ocean Partners UK Ltd, for an unsecured pre-payment funding facility worth US$10 million (~A$15 million).
The concentrate agreement not only paves the way for metal production but will see the companies comes together for a 5-year zinc & silver-lead offtake partnership.
Through POL’s cornerstone asset the Endeavor Silver-Zinc-Lead Mine in New South Wales, the company is seeking to become a long-term, consistent and profitable base and precious metal producer.
Polymetals holds a strong exploration portfolio for organic growth, is development driven and continually measures strategic acquisition opportunities.
The terms of the agreement are:
Meeting expansion objectives
The significant financial backing from Ocean Partners is poised to streamline the company's expansion objectives by addressing developmental funding requirements and supplying much-needed working capital.
Central to Polymetals' future growth is the resumption of mining and processing operations at its underground silver-zinc-lead, Endeavor Mine, in the resource-rich Cobar Basin.
The funds acquired will contribute significantly to these ambitions, setting a solid foundation for POL’s advancement in the mineral extraction sector.
"Polymetals has had a long relationship with Ocean Partners stretching over 20 years," Polymetals Resources executive chairman Dave Sproule said.
"The support shown by this early endorsement via the pre-payment facility and equity participation is testament to the confidence Ocean Partners has in the Polymetals team and the potential of the Endeavor Mine.
“The partnership with Ocean Partners allows Polymetals to do what is does best, focused on recommencement of operations at the Endeavor Mine.”
About Ocean Partners
Ocean Partners provides a comprehensive suite of trading services that cater to a global clientele, including miners, smelters, refiners and metal consumers. With a strong emphasis on bespoke risk management solutions, the firm works in tandem with its global associates to expose clients to unique market opportunities.
The company's operations span numerous countries such as Canada, Chile, China, Cyprus, Mexico, Mongolia, Netherlands, Peru, Taiwan, Turkey, the United Kingdom and the United States.
Beyond these, Ocean Partners maintains agency representation in several other countries and regions, including Argentina, Australia, Bolivia, Brazil, Chile, Ecuador, India, Japan, South Africa, South Korea and Central/Eastern Europe, thereby enhancing its global reach and operational versatility.
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