Glencore, PPX Mining sing LOI for strategic investment, offtake collaboration

PPX Mining executed a binding Letter of Intent with Glencore (GLNCY) Peru, to advance PPX’s Igor Project in La Libertad, Peru through a strategic equity investment, a life-of-mine precious-metals concentrate offtake, and technical collaboration. Under the terms of the LOI, Glencore will subscribe for 83,786,784units of PPX or such number of Units equal to 9.99% of PPX’s issued and outstanding common shares at a price of C$0.237 per Unit. This share price represents a premium of 15.4% to the 30-day volume weighted average price for PPX’s common shares or the period ended October 3, 2025. Each Unit will consist of one Common Share and one Common Share purchase warrant. Each Warrant shall be exercisable at any time, and will entitle the holder thereof to purchase one Common Share at an exercise price of C$0.289 per share for a period of 36-months following closing. The securities issued under the private placement offering will have a hold period of four months and one day from the date of issuance. Up to 25% of the proceeds from the investment will be allocated to plant construction, commissioning, and start-up working capital, while the remainder will support exploration, permitting, environmental programs, community relations, and development of the Igor sulfide areas. Pursuant to the LOI and concurrent with the closing of the subscription, the Company and Glencore will enter into an investor rights agreement. The IRA will grant Glencore customary investor rights, including among other things, the right to appoint one member to PPX’s Board of Directors as long as it maintains at least a 9.99% ownership stake in the Company, subject to customary protections for the Investor with respect to maintaining its ownership interest.As part of the LOI and concurrent with the closing of the subscription, Glencore Peru S.A.C. will also secure long-term offtake rights for precious-metals concentrates produced from the Igor Project. The offtake will be structured to cover 100% of production for the life of mine, ensuring that all concentrates derived from PPX’s concessions will be sold to Glencore under agreed commercial principles. This will provide PPX with a guaranteed sales channel and access to Glencore’s global marketing network, while offering Glencore consistent supply from a high-quality Peruvian project. The framework will also include provisions for advance payments, competitive settlement terms, and flexibility in pricing mechanisms, which will be detailed in the definitive agreements. Dore produced from the Igor Project will be excluded from the offtake. In addition to the financial and commercial aspects, the LOI contemplates technical collaboration through Glencore Technology, encompassing tailings retreatment optimization at PPX’s CIL and flotation plant currently under construction at the Igor Project, as well as technical cooperation aimed at operational and recovery enhancements.