YTC Resources Limited (“YTC” or the “Company”) is pleased to...

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