Centaurus Metals Signs Offtake Deals for Jaguar as Glencore and CNGR Commit

Mining & Resources

Centaurus locks in five years of Jaguar nickel sales and US$40m from Glencore and CNGR, strengthening the Brazil project’s funding path.

Nik HillJournalist · 2 min readIn this storyASX:CTMIn briefAt-a-glance3 takeaways

• 01Offtakes secure Jaguar’s first five years of nickel output.
• 02Glencore and CNGR commit US$20m each.
• 03Offtakes worth ~US$900m; debt talks advance toward FID.

Centaurus Metals (ASX: CTM) has signed two binding nickel concentrate offtake agreements for its Jaguar project in Brazil alongside US$40 million in strategic equity investment commitments from Glencore and CNGR.

The agreements bring the first five years of forecast Jaguar nickel concentrate production under contract, strengthening the project’s commercial position ahead of a final investment decision.

Glencore and CNGR have each committed US$20m in equity, with proceeds intended to contribute to the overall project funding package as Centaurus advances senior debt negotiations.

The two new offtake arrangements have an estimated combined net sales value of approximately US$900m over five years at current nickel prices, with actual proceeds dependent upon market conditions and deliveries.

Five Years’ Output

Under separate agreements, a CNGR subsidiary and Glencore AG will each purchase at least 100,000 dry metric tonnes (dmt) of high-grade Jaguar concentrate across five years, beginning in the first half of 2029.

Each contract covers a minimum 20,000dmt annually of concentrate grading about 30% nickel, representing roughly one-quarter of expected annual output over the initial operating period.

The new commitments supplement an earlier Glencore contract covering another 20,000dmt per year, while both buyers will alternate purchases of additional available production estimated at 60,000dmt over the contract period.

Combined contracted deliveries represent forecast concentrate production containing approximately 22,500t of nickel a year across Jaguar’s first five operating years, with either buyer able to terminate if its first shipment has not occurred by the end of 2029.

Pricing will reference the London Metal Exchange cash settlement nickel price, with variable nickel payability and agreed payments for contained copper and cobalt by-products.

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Equity Funding Conditions

The investment is structured in two tranches, beginning with US$12.5m from each investor following execution of the agreements, subject to Chinese outbound direct investment approval for CNGR.

Glencore’s first tranche comprises 41,903,070 shares, while the corresponding CNGR share count will be fixed using the exchange rate when its approval condition is satisfied.

The second tranche requires US$7.5m from each investor and depends on shareholder approval and Centaurus making an FID, with CNGR also requiring Chinese outbound investment approval.

Conditions for the second tranche must be satisfied by 31 January 2027, leaving part of the proposed funding contingent even as the binding supply contracts provide a clearer route to market.

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Debt Process Advancing

Centaurus is progressing its senior debt financing process, aiming to combine the new equity commitments with debt and other funding to complete Jaguar’s development finance package.

The combination of contracted sales and potential strategic funding comes as the company works towards the decision required before construction proceeds.

Glencore is already an offtake counterparty at Jaguar, while CNGR brings a further buyer with operations in advanced battery materials and nickel processing.

“The signing of these two new offtake and subscription agreements with global leaders in their respective fields of downstream nickel processing represents a major validation of the Jaguar project and its credentials as one of the world’s most significant new sources of high-quality, low-cost nickel sulphide concentrate for global markets,” managing director Darren Gordon said.

“The next few weeks will be a pivotal time for Centaurus and all our key stakeholders as we put in place the final key elements required to fund the development of the Jaguar project and make a Final Investment Decision.”

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Nik Hill

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