Highlights
Scottie Resources enters construction loan and overrun facility agreement with Ocean Partners
Agreement grants Ocean Partners exclusive purchase rights and board representation
Project aims to advance direct shipping ore production with streamlined operations
Canada-based resource explorer Scottie Resources (TSX-V:SCOT), active in the mining sector, has taken a significant step forward in accelerating the development of its Direct Shipping Ore (DSO) project through a strategic financial partnership. The arrangement involves a binding term sheet for a construction loan and overrun facility with private trading firm Ocean Partners UK, marking a key milestone for the company’s operational expansion efforts.
The capital injection is structured to support the transition of the DSO project into production while simplifying processing requirements and maintaining favourable project economics.
Ocean Partners to Acquire Project Output Under Exclusive Terms
As part of the agreement, Ocean Partners will acquire the full output from the DSO project for an initial eight-year period. The terms also outline a significant equity contribution from Ocean Partners, positioning the group as the largest shareholder in Scottie Resources. This equity stake entitles Ocean Partners to appoint a member to the company’s board after an initial period, aligning strategic interests between the two entities.
The partnership structure is designed to facilitate an efficient production timeline, supported by both capital deployment and operational collaboration.
Streamlining Operations by Eliminating Grinding Facilities
The project aims to reduce complexity by avoiding traditional grinding operations, which are typically associated with higher capital and operational costs. This approach focuses on enhancing output margins through simpler logistics and production workflows.
Scottie Resources intends to expand upon its existing preliminary economic assessment, with plans to release an updated version in the coming year. The company also plans drilling campaigns to advance inferred resources to the indicated category, along with environmental baseline studies and a feasibility-level review of ore sorting technologies.
Milestone-Driven Development Framework Underway
Initial financial support is expected to be available during the early stages of production. Repayment of the facility is structured with a grace period, followed by scheduled instalments. The company has also committed to an upfront payment to solidify the terms of the agreement.
These developments come as Scottie Resources continues to focus on mineralisation expansion at its legacy mining sites, aiming to produce DSO products with high output value. With Ocean Partners contributing its commercial expertise and financial resources, the project is positioned to progress under a milestone-driven framework.