Broken Hill Mines (ASX: BHM), formerly Coolabah Metals, has executed a binding conditional term sheet with Hartree Metals LLC for a US$25 million (~A$40 million) Senior Secured Offtake Financing Facility. This facility is designed to fund growth plans at the Rasp and Pinnacles Ag-Pb-Zn operations. The key terms include a four-year term, with a 12-month principal repayment grace period, and an interest rate of Secured Overnight Financing Rate (SOFR) plus 3.5%. Drawdown will be flexible across three tranches over the initial 12 months. Hartree Metals will also purchase 200,000 tonnes of lead concentrate from the Rasp and Pinnacles operations under competitive market terms.
The Offtake Financing Facility is senior secured and remains subject to customary due diligence, approvals, and long-form documentation, expected to be completed by July 2025. This financing will significantly boost the ongoing growth plans for the Rasp Mine and advance development activities at the Pinnacles Mine. In addition to the 200,000 tonnes under the Offtake Financing Facility, Hartree has also executed a spot lead concentrate offtake agreement for Rasp operations production up to June 30, 2025. The Hartree Offtake Financing Facility replaces the previously announced transaction with Trafigura Group Pte. Ltd.
Hartree Metals LLC, formerly Hetco, is a global commodity trader with expertise in physical and financial commodities. The company provides tailored solutions for its customers, leveraging its deep knowledge in sourcing, trading, and delivering metals worldwide. The financing and offtake agreement represent a strategic move for Broken Hill Mines, securing necessary capital and a reliable offtake partner to support its expansion plans. The market will likely view this as a positive step, de-risking the company’s growth trajectory and providing confidence in its operational capabilities.
