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May 17, 2022
WHITEHORSE, YT – Minto Metals Corp. (TSXV: MNTO) (“Minto” or the “Company”) today announced it has recently completed a detailed review of proposals received from various offtake companies with respect to the processing and purchase of the copper concentrate produced at the Company’s Minto Mine. In connection with the completion of this process, Minto Metals has entered into a more favourable offtake extension agreement (the “New Agreement”) with Sumitomo Corporation (SC), contracted through Sumitomo Canada Limited.
In the agreement, SC agrees to purchase 100% of the copper concentrate produced at the Minto Mine during the additional 4 years based on 50,000 dmt/year of concentrate production. The new extension agreement is effective as of May 16th, 2022, and continues until the additional 200,000 dmt are produced.
In conjunction with the off-take agreement, SC has agreed to extend its debt facility to $17.5 million dollars 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”, stated Chris Stewart, President & CEO of Minto Metals.
“We are delighted to extend the offtake agreement with Minto Metals,” stated Takeshi Ishimaru, General Manager of Non-Ferrous Raw Materials Dept., Sumitomo Corporation. “Minto Metals has proven to be a strong, reliable operator and their sustainable practices uphold Sumiotmo’s long-term values. We look forward to a long, continuing relationship with Minto.”
About Minto Metals Corp.
Minto owns and operates the producing Minto mine located in the Minto Copper Belt of the Yukon, Canada. The Minto mine has been in operation since 2007 with underground mining commencing in 2014. Since 2007, approximately 500Mlbs of copper have been produced from the Minto mine. Capstone Mining (previous owners) put the Minto mine into care & maintenance in 2018 and the mine operations were shut down. In mid-2019 Minto (formerly Minto Explorations Ltd.) purchased the Minto mine operation and restarted the mine. The current Minto mine includes underground mining operations, a processing plant that produces a high-grade copper, gold, and silver concentrate, and all supporting infrastructure associated with operating a remote mine located in Yukon. The Minto mine property is located on the Selkirk First Nation’s Territory, sitting about 20 km WNW of Minto Landing on the west side of the Yukon River. Minto Landing is located on the east side of the Yukon River approximately 250 road-km north of the City of Whitehorse, the capital city of the Yukon.
About Sumitomo Corporation
Sumitomo Corporation (“SC”) is a leading Fortune 500 global trading and business investment company with 131 locations (Japan: 20, Overseas: 111) in 66 countries and regions. The entire SC Group consists of more than 900 companies. SC conducts commodity transactions in all industries utilizing worldwide networks, provides customers with financing, serves as an organizer and a coordinator for various projects, and invests in companies to promote greater growth potential. SC’s core business areas include six business units: Metal Products; Transportation & Construction Systems; Infrastructure; Media & Digital; Living Related & Real Estate; and Mineral Resources, Energy, Chemical & Electronics, and one initiative: Energy Innovation.
Our corporate message, “Enriching lives and the world”, was created to encapsulate our vision for sustainability in the next 100 years. Our business, as well as our relationship with our stakeholders, has expanded on a global scale. Our mission is to grow sustainably alongside society, pursue development for the world, and enable better lives for all.
For more information, please visit: https://www.sumitomocorp.com/en/jp
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