Broken Hill Mines Secures $40 Million Offtake Financing with Hartree Metals

About Broken Hill Mines Limited

Broken Hill Mines Limited (ASX: CBH), headquartered in New South Wales, is an Australian mining company focused on the exploration, development, and production of lead, silver, and zinc. Founded in 2021, the company operates the Rasp Mine and Pinnacles Project, both located within the Broken Hill mineral province, a globally recognised source of high-grade base and precious metals. The Rasp Mine is a fully operational lead-silver-zinc mine, producing concentrates for international markets, while the Pinnacles Project is being developed as a future expansion opportunity.

US$25 Million Financing Facility to Support Growth

The US$25 million Senior Secured Offtake Financing Facility will provide long-term capital to fund growth plans at Rasp and development activities at Pinnacles. The facility has a four-year term, with a 12-month principal repayment grace period before transitioning to a structured quarterly repayment schedule.

The financing agreement is backed by competitive market terms, including an interest rate of SOFR + 3.5%, and allows flexible drawdowns over the first 12 months. The agreement replaces the previously planned US$10 million facility with Trafigura, more than doubling the available capital for expansion projects.

Hartree Metals Secures Long-Term Lead Concentrate Supply

As part of the financing deal, Hartree Metals LLC will purchase 200,000 tonnes of lead concentrate from Broken Hill Mines’ Rasp and Pinnacles operations. The lead concentrate will be sold on market-competitive terms, with payability reflecting industry-standard pricing for lead, silver, and associated byproducts.

In addition to the long-term offtake, Hartree has also signed a spot lead concentrate agreement to purchase additional lead production from Rasp until June 2025. These agreements will ensure consistent revenue streams for Broken Hill Mines while strengthening its relationships with global metal traders.

Hartree Metals LLC, a leading global commodity trader, has a strong presence in the wholesale energy and metals markets. Established in 1997 as Hetco, the company has a track record of sourcing, trading, and delivering base metals to international markets, providing tailored solutions for mining companies worldwide.

Advancing Rasp and Pinnacles Growth Plans

With US$25 million in secured funding, Broken Hill Mines is now well-positioned to expand operations at Rasp and advance development at Pinnacles. The company will allocate capital towards mine optimisation, exploration drilling, and infrastructure improvements, ensuring long-term production stability and resource expansion.

The transaction remains subject to customary due diligence and regulatory approvals, with completion expected by July 2025. Once finalised, the financing package will enable Broken Hill Mines to enhance production capacity, improve operational efficiency, and extend the life of its lead-silver-zinc assets.

Market Outlook and Future Strategy

Broken Hill Mines is securing its position as a key producer of lead, silver, and zinc, commodities that continue to play a critical role in global industries, including renewable energy and battery technology. The lead and silver markets remain strong, with demand driven by energy storage solutions, industrial applications, and infrastructure development.

The company’s ability to secure competitive financing and long-term offtake agreements reinforces its financial strength and growth potential. With a well-structured development plan in place, investors will be closely watching upcoming milestones, including final financing approvals, project development progress, and potential future resource upgrades.