Cape Lambert Resources has appointed MRM as its strategic adviser to review, assess and advise on the existing offers of concentrate offtake and commodity linked funding that have already been received by Cape Lambert Resources from a number of major international trading groups.
London-based MRM was established by Rohan Ziegelaar, a highly experienced and successful metals market professional, to provide independent risk management advice including the structure and implementation of metals and concentrate offtake agreements and sales and commodity linked funding structures.
[quote]Ziegelaar is MRM’s MD and has over 20 years of metals market experience gained in a number of sales, structuring and trading roles with some of the largest commodity trading houses and investment banks, whilst based in London, New York, Dubai and Geneva.
MRM’s team of professionals have a proven track record in providing advice on strategy and execution of metals and offtake and sales agreements and the implementation of commodity and derivative linked debt funding solutions.
MRM has established a broad network of contacts through the metals market and have a commitment to building long term relationships. The MRM team has successfully advised and transacted with a large number of mining companies, smelters, consumers, investors and government bodies, including some of the largest customers of the London Metals Exchange metals market.
MRM will further assist Cape Lambert Resources, where necessary, in identifying potential new offtake partners and financiers and in finalising its negotiations and the execution of binding concentrate offtake agreements and committed funding.
It is anticipated that through MRM’s engagement as its strategic adviser, Cape Lambert Resources will be able to quickly finalise a binding offtake agreement and committed funding package that will allow it to accelerate its advanced cobalt projects in Africa, including its joint venture interests in the Kipushi Cobalt Tailings and Kasombo Cobalt-Copper Projects in the Democratic Republic of Congo and the recently acquired Kitwe Cobalt-Copper Tailings Project in Zambia.
“The appointment of Metals Risk Management to advise and negotiate binding offtake agreements and committed funding with some of the world’s major commodity trading groups is a major step forward for us as we look to bring our advanced cobalt projects into production at a time of record pricing and demand,” states Cape Lambert Resources’ executive chairman, Tony Sage.
“We are delighted to be working with MRM, who come with a proven track record in negotiating metals and concentrate offtake agreements and commodity and derivative linked funding for companies such as Cape Lambert Resources. We look forward to working with MRM,” adds Sage.
“We are pleased to be working with Cape Lambert Resources to advise and assist in the establishment of its offtake and commodity linked funding requirements,” says Ziegelaar.
“Cape Lambert Resources has rapidly acquired interests in a number of near-term cobalt production opportunities in Central Africa and to have done this so quickly and at a time of such strong cobalt market fundamentals puts them in a very good position to be able to secure well priced and structured concentrate offtake and sales agreements and accompanying commodity linked debt funding solutions,” adds Ziegelaar.
Under the terms of the engagement with MRM, the Cape Lambert Resources will pay a success fee in cash to MRM on first shipment under the proposed offtake agreement and on drawdown of any funding package secured by MRM. No equity is to be issued under the engagement to MRM.
Feature image credit: Cape Lambert Resources