International commodities trader Trafigura Beheer has agreed to make an equity investment of Cdn$3mn (US$2.9mn) in Vancouver-based Andean American Mining (TSX-V: AAG), which at current prices translates into a roughly 8.7% stake, Andean’s IR official Nancy Massicotte told BNamericas.

Trafigura will acquire some 7.5mn shares, Massicotte said, adding that funds will be used for further construction at the Invicta polymetallic project in Peru and general corporate affairs.

Andean American said in a release that Trafigura will receive a long term off-take agreement for the sale of copper, lead and zinc concentrates from Invicta.

The companies also plan to negotiate a project finance, cost overrun and working capital facility for up to US$15mn.

Trafigura was also granted an option to increase its equity interest in Andean American by acquiring an additional 16% in the company.

Invicta is due to turn out 500,722oz gold, 3.22Moz silver, 41.5Mlb (18,824t) copper, 14.3Mlb lead and 5.59Mlb zinc and pull in revenues of US$600mn over its five-year life. Capex for the project is slated at US$65.3mn.

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