Shares in Straits Resources Limited (ASX:SRQ) rose yesterday after the metals explorer said it would restructure its copper offtake agreement with a JP Morgan company.
Straits will pay $US120 million for JP Morgan to terminate the current offtake agreement at the Tritton mine in New South Wales.
JP Morgan will then enter into a new deal for all copper concentrates from the mine until the end of 2013 with the product priced to reflect lower prices for the metal.
Straits and its Tritton copper mine suffer from the legacy of significantly “out of the money” offtake terms entered into by the previous owners prior to the original Tritton company's initial public offer in 2002.
In the 2011 financial year Straits Resources booked a net loss of $19 million.
