Home » Glencore Doubles Down on Critical Minerals Play

Glencore Doubles Down on Critical Minerals Play

Commodity Giant Increases Stake in North American Critical Minerals Project

by Victor Adetimilehin

Glencore, a leading global commodity trading and mining company, has announced a significant increase in its investment in Stillwater Critical Minerals. The Canadian subsidiary of Glencore participated in a private placement, injecting an additional C$2.1 million into the company focused on developing the Stillwater West critical minerals project in Montana, USA.

Stillwater West: A Rich Deposit of Critical Materials

The Stillwater West project is situated in Montana’s Stillwater mining district, known for its historical production of platinum group elements (PGEs), nickel, copper, chromium, and other valuable commodities. However, this project holds immense promise, boasting the largest nickel resource currently estimated within an active US mining district, according to Stillwater Critical Minerals.

A January 2023 technical report outlined the project’s potential, highlighting an estimated 1.6 billion pounds of nickel, copper, and cobalt in inferred resources. The report also indicated the presence of 3.8 million ounces of palladium, platinum, rhodium, and gold. These resources are contained within a vast deposit of over 255 million tonnes of material.

The Stillwater West project holds strategic significance as all five identified mineral deposits are located within a concentrated 9-kilometer zone and demonstrate strong potential for expansion along strike and at depth. Furthermore, the project benefits from its proximity to the high-grade PGE mines operated by Sibanye-Stillwater, boasting a production history exceeding 14 million ounces of palladium and platinum.

Strategic Investment Bolsters Project Advancement

“We are thrilled to have Glencore’s continued support,” said Michael Rowley, CEO of Stillwater Critical Minerals. “Their participation in this placement strengthens our position as we advance the development of Stillwater West, a large-scale project harboring nine critical minerals essential to the US.”

However, this recent investment by Glencore represents the largest single contribution within a C$2.5 million private placement undertaken by Stillwater Critical Minerals. Units were offered at C$0.14 each, with Glencore’s order significantly exceeding those of other participants. These units hold an exercise price of C$0.21, potentially generating an additional C$1.875 million for Stillwater Critical Minerals if exercised.

This move by Glencore follows their initial investment in June 2023, where they acquired C$4.94 million worth of Stillwater Critical Minerals’ units, securing a 9.99% stake in the company. The recent investment further demonstrates Glencore’s confidence in the potential of the Stillwater West project.

Looking Ahead: A Promising Future for Critical Mineral Development

The increased investment from Glencore provides a significant boost to Stillwater Critical Minerals and the development of the Stillwater West project.  Furthermore, this project represents a valuable source of critical minerals essential for various modern technologies, and its advancement holds promise for strengthening North American supply chains in these crucial materials.

Source: Mining.com

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