Binding Finance and Offtake Agreed FOR Development of High Grade Mabilo Copper- GOLD Project Announcement to the Toronto Stock Exchange and Australian Securities Exchange
Not for release to US wire services or distribution in the United States
BINDING FINANCE AND OFFTAKE AGREED FOR
DEVELOPMENT OF HIGH GRADE MABILO COPPER-
GOLD PROJECT
ANNOUNCEMENT TO THE TORONTO STOCK EXCHANGE
AND AUSTRALIAN SECURITIES EXCHANGE
6 MARCH 2025
Highlights:
▪ Mt. Labo Exploration and Development Corporation (“Mt. Labo") enters
strategic partnership with one of the largest natural resource companies
in the world, Glencore International AG, to finance Stage 1 of the high -
grade Copper and Gold Mabilo Project
▪ The parties have entered into a binding term sheet for a financing facility
and offtake, and will now proceed to long form documentation
▪ Secured Financing Facility provides for a total of up to US$30m (in three-
tranches), on attractive terms, for the development of Stage 1 of the
Project as well as working capital requirements
o Tranche A, for US$3.5m, provides early funding flexibility to complete
Stage 1 Project land acquisition, with limited conditions precedent.
o Tranche B provides US$21.5m for the balance of development of
Stage 1 of the Project together with any working capital needs.
o Tranche C provides US$5.0m for any additional working capital
purposes subject to consent of both parties
▪ The facility provides funding for 100% of the estimated development
budget, together with a further US$5m for any cost overruns and working
capital needs
▪ Offtake terms were provided for all Stage 1 products, being the Gold Oxide
Cap, Oxide Copper - Gold Skarn and the Supergene Chalcocite, on market
terms
▪ Stage 1 high-grade Direct Shipping Operation (“DSO”) will mine, amongst
other products, approximately 100,000t of supergene chalcocite material
which runs in the order of 21% reserve grade copper
▪ RTG’s share in the project cashflow from Stage 1 DSO, based on current
commodity prices, is expected to be in the order of 50% of total proceeds,
including the following components:
o Early repayment of approximately US$26m in debt owing by Mt.
Labo to RTG;
o 2% NSR on the gross revenue of the project; and
o 40% of net profits
Mabilo Project Overview of Key Metrics Before any Exploration Success
Project
Resources
12.76Mt @ 1.9g/t Au, 1.8% Cu,
40.5% Fe
Contained Cu 226,800 t
Contained Au 762,500 oz
Reserves
7.792Mt @ 2.04g/t Au, 1,95% Cu,
45.5% Fe
Contained Cu 151,900 t
Contained Au 511,100 oz
Stage 1 -Total Stage 2 - Annual
Total/Annual
Tonnes
Treated
578,048 t
Approx. 1 year
1,350,000 tpa
Approx. 6 years
Total/Annual
Production
Total Cu – 25,200 t
Total Au – 52,900 oz
Total Cu – 18,400 t
Total Au – 66,800 oz
Total Fe – 346,700 t
Total/Annual
Payable Metal
Approx. 19,000 t of Cu
Approx. 29,400 oz of Au
Approx. 16,400 t of Cu
Approx. 47,100 oz of Au
Approx. 346,700 t of Fe
Cash Cost
US$72.0/t
US$91.5/t
Estimates based on the Feasibility Study dated March 2016 and announced on 18 March 2016
• Importantly, drilling at the Mabilo Project was truncated early due to a then
dispute with the previous joint venture partner. With additional planned
drilling, Mt. Labo is confident there are extensions both along strike and at
depth but more importantly, extensive work has been done identifying the
potential porphyry source, which would be a game changer in terms of scale
for the project. Development of the Stage 2 plant has been designed on a
compartmentalised basis to allow for easy and cost effective expansion.
The Board of RTG Mining Inc. (“RTG”, or the “Company”) (TSX Code: RTG, ASX Code:
RTG) is pleased to announce that Mt. Labo has entered into a strategic partnership with,
Glencore International AG (“Glencore”), for offtake and finance for the development of
Stage 1 of the high-grade Copper and Gold Mabilo Project (“the Project”).
Following a comprehensive and competitive financing process, including extensive due
diligence to address all key issues, Mt. Labo, which owns 100% of the high grade copper-
gold Mabilo Project, received multiple offers of finance and is pleased to announce a
partnership with Glencore with a binding term sheet executed, with the most competitive
terms for the debt finance and offtake to fund 100% of the planned capital expenditure for
the development of Stage 1 of the Project.
A summary of the key terms is set out below in this document.
Management Commentary:
Commenting on this key development, RTG’s CEO Justine Magee said : “This is a
very important and exciting step in the start-up of the high -grade Mabilo Copper -Gold
Project and signals the transition of RTG from explorer / developer to producer.
We are delighted to be partnering with Glencore to advance Mabilo, and the favourable
finance and offtake terms also come with a strong counterparty and group that have been
both active and successful themselves in the Philippines via the PASAR Refinery. We are
very confident our partnership with Glencore will add significant value to Mt. Labo’s
collective shareholder bases and the Philippines as a whole.
Stage 1 of the Project is low risk with only nominal upfront capital , but generates very
strong cashflow quite quickly, as there is no processing required – you simply mine the
products, crush and then ship.
With a reserve grade of 21% copper, demand for the product is strong and it should allow
us to internally fund our equity contribution for Stage 2, which produces a high-grade
copper-gold concentrate, and commit to drilling to identify the porphyry source, which
could be a game changer for the scale and value of the Project.
As we enter this important phase, RTG remains very well positioned to capitalise on
consensus views of strong and improving forecasts for copper and gold prices. We
believe this is a key milestone that will clearly demonstrate the value of the Mabilo Project,
and we are excited to be moving the Project through to operations.”
Summary of Key Term Sheet Provisions:
Facility size US$30 million
Tranche A – US$3.5 million
Tranche B – US$21.5 million
Tranche C – US$5.0 million
Term 26 months from the Borrower Commitment Date
Interest Tranche A and B – 3-month SOFR + 5%
Tranche C – 3-month SOFR + 7%
Security Fully s ecured facility : Guarantees from shareholders , first -
ranking asset and share securities
Offtake Stage 1 offtake for 100% of Gold Oxide Cap, Copper / Gold Oxide
Skarn and Supergene Chalcocite on market-based terms
Draw down Subject to completion of long form documentation and customary
conditions precedent
With the acceptance of the term sheet, Mt. Labo will progress to finalisation of long-form
documentation.
The initial focus will be the finalisation of land acquisition , drawing on Tranche 1 of the
facility and then securing any necessary tree cutting permits. Following completion of
these two key steps, Mt. Labo will be in a position to commit to the development schedule
and start-up of the Project.
About Glencore International AG:
Glencore is one of the world’s largest global diversified natural resource companies and
a major producer and marketer of more than 60 commodities that advance everyday life.
Through a network of assets, customers and suppliers that spans the globe, Glencore
produce, process, recycle, source, market and distribute the commodities that support
decarbonisation while meeting the energy needs of today.
With around 1 50,000 employees and contractors and a strong footprint in over 3 0
countries in both established and emerging regions for natural resources, Glencore
marketing and industrial activities are supported by a global network of more than 50
offices.
Glencore mines and processes copper ore in the key mining regions of Africa, Australia,
South America, Canada and Kazakhstan and smelts and refines copper at smelters and
refineries around the world, including the majority-controlled Philippine Associated
Smelting and Refining (“PASAR”) smelter in the Philippines and the wholly controlled
Mount Isa copper smelter, located in North Queensland.
Glencore is a proud member of the Voluntary Principles on Security and Human Rights
and the International Council on Mining and Metals and is an active participant in the
Extractive Industries Transparency Initiative.
ABOUT RTG MINING INC
RTG Mining Inc. is a mining and exploration company listed on the main board of the
Toronto Stock Exchange and the Australian Securities Exchange. RTG is currently
focused primarily on progressing the Mabilo Project to start -up having now received a
mining permit for the Project and offer of finance, with a view to moving quickly and safely
to a producing gold and copper company.
RTG also has several exciting new opportunities including the Panguna Project in
Bougainville, which it remains committed to while also considering further new business
development opportunities.
RTG has an experienced management team which has to date developed seven mines
in five different countries, including being responsible for the development of the Masbate
Gold Mine in the Philippines through CGA Mining Limited. RTG has some of the most
respected international institutional investors as shareholders including Equinox Partners
and Franklin Templeton.
ENQUIRIES
President & CEO - Justine Magee
Tel: +61 8 6489 2900
Email: [email protected]
Australia Investor and Media Contact - Sam Burns
Tel: +61 400 164 067
Email: [email protected]
COMPLIANCE STATEMENT
Date: 6 March 2025
Authorised for release by: By the Board of Directors
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
The Toronto Stock Exchange has not reviewed nor does it accept responsibility for the accuracy
or adequacy of this press release, which has been prepared by management.
This announcement includes certain “forward-looking statements” within the meaning of Canadian
securities legislation including, among others, statements made or implied relating to the
interpretation of exploration results, accuracy of mineral resource an d mineral reserve estimates,
parameters and assumptions used to estimate mineral reserves and mineral resources, realization
of mineral reserve and mineral resource estimates, estimated economic results of the Mabilo
Project, future operational and financi al results, including estimated cashflow and the timing
thereof, estimated expenditures, expansion, exploration and development activities and the timing
thereof, including expectations regarding the DSO, plans for progressing Stage 2 development,
completion of a debt funding package, the negotiation of contracts for start up works and offtake
arrangements and the completion of merged documentation, RTG’s objectives, strategies to
achieve those objectives, RTG’s beliefs, plans, estimates and intentions, and similar statements
concerning anticipated future events, results, circumstances, performance or expectations. All
statements, other than statements of historical fact, included herein, are forward -looking
statements. Forward looking statements generally can be identified by words such as “objective”,
“may”, “will”, “expected”, “likely”, “intend”, “estimate”, “anticipate”, “believe”, “should”, “plans”, or
similar expressions suggesting future outcomes or events. Forward -looking statements involve
various risks and uncertainties and are based on certain factors and assumptions. There can be
no assurance that such statements will prove to be accurate, and actual results and future events
could differ materially from those anticipated in such statements. Import ant factors that could
cause actual results to differ materially from RTG’s expectations include uncertainties related to
fluctuations in gold and other commodity prices and currency exchange rates; uncertainties
relating to interpretation of drill results and the geology, continuity and grade of mineral deposits;
uncertainty of estimates of capital and operating costs, recovery rates, production estimates and
estimated economic return; the need for cooperation of government agencies in the development
of R TG’s mineral projects; the need to obtain additional financing to develop RTG’s mineral
projects; the possibility of delay in development programs or in construction projects and
uncertainty of meeting anticipated program milestones for RTG’s mineral proje cts and other risks
and uncertainties as discussed in RTG’s annual report for the year ended December 31, 2023 and
detailed from time to time in our other filings with the Canadian securities regulatory authorities
available at www.sedar.com. The forward ‐looking statements made in this announcement relate
only to events as of the date on which the statements are made. RTG will not release publicly any
revisions or updates to these forward ‐looking statements to reflect events, circumstances or
unanticipated events occurring after the date of this announcement except as required by law or
by any appropriate regulatory authority.
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES
This announcement has been prepared for publication in Canada and Australia and may not be
released to US wire services or distributed in the United States. This announcement does not
constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or any
other jurisdiction. Any securities described in this announcement have not been, and w ill not be,
registered under the US Securities Act of 1933, as amended (the “US Securities Act”), or any state
securities laws, and may not be offered or sold in the United States except in transactions exempt
from, or not subject to, registration under the US Securities Act and applicable US state securities
laws.