PPX Signs Binding Letter of Intent with Glencore for Strategic Investment, Offtake and Technical Collaboration

Executive Summary

• PPX Mining entered a binding Letter of Intent with Glencore to sell up to 9.99% of its common equity (≈83.8 M units at C$0.237 per unit), representing a 15.4% premium to the recent VWAP.
• The deal includes a life‑of‑mine off‑take of 100% of precious‑metals concentrates from the Igor Project (excluding dore) and technical collaboration on plant optimization.
• Up to 25% of proceeds will fund plant construction, commissioning and start‑up working capital; remaining funds will support exploration, permitting, environmental programs, community relations, and development of additional sulfide zones.

Key Details

• Equity Subscription: Glencore (or affiliate) to subscribe for up to 83,786,784 units (=9.99% of PPX’s issued common shares).
• Unit Price: C$0.237 per unit (US$0.170 using CAD 1.3963/USD). Premium of 15.4% to the 30‑day VWAP ending Oct 3 2025.
• Unit Composition: Each unit = 1 common share + 1 common share purchase warrant.
• Warrant Terms: Exercise price C$0.289 per share; exercisable at any time for 36 months post‑closing.
• Hold Period: Securities subject to a four‑month + one‑day hold from issuance.
• Use of Proceeds: ≤25% allocated to plant construction, commissioning and start‑up working capital; remainder for exploration, permitting, environmental programs, community relations, and development of Igor sulfide areas.
• Investor Rights Agreement (IRA): Grants Glencore the right to appoint one director while maintaining ≥9.99% ownership, with customary investor protections.
• Offtake Arrangement: Glencure Peru will secure long‑term off‑take rights covering 100% of precious‑metals concentrate production for the life of mine (excluding dore). Includes advance payments, competitive settlement terms, and flexible pricing mechanisms to be detailed in definitive agreements.
• Technical Collaboration: Access to Glencore Technology for tailings retreatment optimization at PPX’s CIL and flotation plant and broader operational/recovery enhancements.
• Closing Conditions: Subject to satisfactory due diligence, corporate and regulatory approvals, and conditional listing approval on the TSX Venture Exchange.

Notable Quotes

“Signing this binding LOI with Glencore is a significant milestone for PPX. The combination of strategic equity, a life‑of‑mine off‑take framework, and access to Glencore Technology provides a strong platform to advance Igor responsibly and efficiently while aligning our financing and commercialization pathways.” – Brian Imrie, Executive Chairman, PPX Mining

“Through our investment, offtake partnership and technical expertise, we look forward to working with PPX to unlock the full potential of the project.” – Gonzalo Cabello, Glencore AG