Silver X secures $2M from Trafigura to support Peru copper expansion

Silver X Mining’s Nueva Recuperada project in Peru. Credit: Silver X MiningSilver X Mining (TSXV: AGX) has secured a $2 million loan from commodities trading giant Trafigura to support the expanded production of copper from its Nueva Recuperada project in central Peru.The loan builds on the existing copper offtake agreement for Nueva Recuperada, which is ramping up to its nameplate capacity. The proceeds will be used by Silver X to install a third flotation circuit at the Recuperada plant to produce additional copper concentrates.Under the companies’ arrangement, Silver X will sell 100% of the copper concentrate produced at Nueva Recuperada to Trafigura from the start of production through April 2029.“The execution of this expanded offtake agreement with Trafigura marks a key milestone for Silver X, positioning us to unlock meaningful value from our growing production profile,” stated Silver X CEO Jose Garcia. “This agreement not only strengthens our balance sheet through access to flexible capital but also supports the acceleration of development at our project.”The $2 million loan will be drawn in in tranches and carries an interest rate of SOFR plus 6%, with an expected repayment term of 20 months from the initial drawdown date.Historical mine areaThe Nueva Recuperada project covers a large area (over 200 sq. km) within the Huachocolpa mining district, containing silver-gold-lead-zinc-copper epithermal veins and other deposit types. To date, a total of 541 veins and splits have been identified on the property.The project lies within a historical mining area, with mining activity dating back to the 16th Century. The Nueva Recuperada plant operated for 60 years before being placed on care and maintenance in 2014. Historic production accounts for approximately 200 million oz. of silver equivalent within a 30 km radius.Silver X acquired the project by consolidating various mining concessions from Buenaventura, Pan American Silver and Peruvian Metals. The Tangana unit located at the northern end of the property began production in 2022 and is now ramping up towards a nameplate capacity of 720 tonnes per day.Earlier this year, the company updated the resource estimate at Nueva Recuperada to 4.26 million tonnes, with grades of 3.28 oz. silver per tonne, 0.56 gram gold, 1.88% lead and 2.22% zinc.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com