TSX-V-listed Minto Metals has entered into an offtake extension agreement with Japan’s Sumitomo, which has agreed to buy all the copper concentrate produced at the Minto mine, in Yukon, for an additional four years.
The agreement is for 50 000 dmt/y of concentrate and will be effective until the additional 200 000 dmt are produced.
In conjunction with the offtake agreement, Sumitomo has agreed to extend its debt facility to $17.5-million, which is repayable over 48 months or the remaining agreement term at the time of the draw.
"Minto Metals is pleased to announce an extension to our current relationship and offtake agreement with Sumitomo. Sumitomo has been a tremendous business partner since the restart of the Minto mine in 2019 and we look forward to continuing this relationship and providing Sumitomo with our high-grade, quality copper concentrate for an extended period of time,” said president and CEO Chris Stewart.
The Minto mine has been in operation since 2007 with underground mining starting in 2014. Since 2007, about 500-million pounds of copper have been produced from the Minto mine.
Capstone Mining, the previous owners, put the Minto mine into care and maintenance in 2018 and the mine operations were shut down. In mid-2019 Minto purchased the operation and restarted the mine.