Zodiac Gold signs term sheet with Vitol

Executive Summary

• Zodiac Gold Inc. signed a non‑binding term sheet with Vitro (energy and commodities giant) to establish a multiyear strategic partnership for financing, marketing and pre‑payment of iron ore from its Bomi South and Bong West licences in Liberia.
• The agreement would give Zodiac a structured pre‑payment facility and exclusive global offtake rights for up to 36 months once production commences, providing essential working capital to accelerate development.
• Vitol will act as the exclusive marketer, leveraging its international network; ESG commitments and safeguards are embedded in the term sheet.

Key Details

• Parties: Zodiac Gold Inc. (issuer) and Vitol (partner).
• Scope of Licences: Bomi South and Bong West exploration licences adjacent to Zodiac’s Todi project, located within Liberia’s premier iron‑ore district near major ports and existing mines (Bao Chico, China Union, Vedanta’s Western Cluster).
• Term Sheet Highlights:
• Structured pre‑payment facility – allows Zodiac to monetize future stockpiled ore before shipment.
• Exclusive marketing agreement – Vitol becomes the sole marketer of Zodiac’s iron ore for a 36‑month period after production start‑up.
• ESG commitments – both parties agree to uphold international standards on community engagement, environmental protection and governance.
• Financial Impact: The pre‑payment facility is intended to provide “essential working capital” to fast‑track production; specific monetary terms (price per tonne, volume caps, etc.) are not disclosed in the term sheet.
• Conditions: Term sheet is non‑binding; definitive agreement subject to:
• Negotiation and execution of a final marketing agreement.
• Receipt of all required regulatory approvals.
• Completion of Vitol’s due‑diligence review.
• Strategic Rationale (Zodiac): Access to Vitol’s global trading platform, financing expertise, and market intelligence to accelerate iron‑ore development and generate early cash flow from its multi‑commodity asset base.
• Strategic Rationale (Vitol): Expansion of Vitol’s ferrous metals portfolio in West Africa; leveraging the proximity of Zodiac’s licences to existing high‑grade iron‑ore mines and export infrastructure.
• Quotes:
• “This partnership with Vitol is a transformational moment for Zodiac… it will give us the firepower and flexibility to fast‑track iron ore development and unlock early cash flow.” – David Kol, CEO, Zodiac Gold.
• “We’re delighted to partner with Zodiac… we look forward to working with Zodiac as the project progresses.” – Derek Wilson, Global Head of Raw Materials, Vitol.

Notable Quotes

• David Kol (CEO, Zodiac Gold): “We believe it will give us the firepower and flexibility to fast‑track iron ore development and unlock early cash flow from our multicommodity asset base.”
• Derek Wilson (Vitol): “We are excited by the potential of Zodiac’s targets within an established mining region and look forward to working with Zodiac as the project progresses.”