Develop Global (ASX:DVP) has finalized a loan facility agreement with Trafigura, amounting to approximately A$100 million. This funding will be used to restart the Woodlawn Copper-Zinc Mine in New South Wales. A five-year offtake agreement has also been secured, with the first concentrate production expected by next June.
Develop Global has secured a US$65 million loan from Trafigura to finance the restart of the Woodlawn Copper-Zinc Mine, with repayment aligned with offtake payments. The processing plant refurbishment is half completed, and initial ore production is expected in March. The company anticipates substantial cashflow from the project over a decade, projecting A$1.1 billion pre-tax cashflow and A$375 million free cashflow in the first three years. Develop Global aims to leverage these strategic agreements to ensure the mine's successful restart and future profitability.
The agreements with Trafigura provide a fully funded solution for recommissioning the Woodlawn Mine and transitioning it to a cashflow positive status.