financing is here 100% to glencore, page-2

YTC Resources Limited (“YTC” or the “Company”) is pleased to announce that it has agreed binding terms with Glencore International AG (“Glencore”) for the provision of up to A$155 million in debt and converting note facilities (together “Project Finance Facilities”), in addition to the subscription by Glencore of $2.95 million in YTC shares, for the construction of the Hera and Nymagee Projects (“the Transaction”), subject to the conditions precedent specified below.
? Glencore to subscribe for a placement of YTC shares to the value of $2.95 million at a 25% premium to YTC’s 30 day VWAP, to grow its total equity interest in YTC to 9.9%
? Glencore committed to provide YTC with up to A$155 million in funding comprising two converting note facilities for a total of A$70 million, and three debt facilities for a total A$85 million (“Project Finance Facilities”), subject to conditions discussed below
? The Project Finance Facilities have been structured to ensure financial flexibility for YTC and manage cash flow during project ramp-up whilst providing Glencore with the strategic benefits of the base metal concentrate production from Hera and Nymagee and the associated synergies with the existing Glencore operations in the Cobar district
? The development of both Hera and Nymagee will be funded into production once the Project Finance Facilities are in place
? YTC will retain sufficient cash reserves to maintain continuous exploration programmes at the Hera and Nymagee Projects, and at its regional targets
? The Project Finance Facilities place YTC in a strong position to commence development of the Hera Gold and Base Metals Project, and establish a strong platform from which it may integrate the Nymagee Copper Project in the medium term
? YTC has agreed life of mine offtake and marketing arrangements with Glencore in respect of base metals production from the Hera and Nymagee projects
? YTC and Glencore will form a Technical Steering Committee to advise on the technical aspects of the mining feasibility, development and operations of the Hera and Nymagee Projects
? YTC well placed to join the ranks of Australia’s gold production companies, and begin its transformation from explorer to diversified miner