Copper and cobalt mining company Chemaf is seeking potential buyers for the business as it faces a cash crunch, according to a document seen by Reuters.

The proposed sale comes after its mine expansion plans faced financial difficulties, requiring a fresh cash injection, reported Bloomberg.

The miner requires up to $300m to complete the expansion projects at the Etoile and Mutoshi copper and cobalt mines in the Democratic Republic of Congo (DRC). These are currently 85% complete.

In the document, Chemaf said that these projects have been impacted by weakening cobalt prices and high inflation, and the current debt is not available for a complete draw.

Chemaf, a longtime partner of commodities trader Trafigura, is scouting for buyers to acquire the whole company.

Besides developing the largest copper and cobalt mines in the DRC, Chemaf is constructing two additional processing facilities.

In pursuit of these plans, Chemaf secured a $600m loan arranged by Trafigura in 2022.

The privately held copper and cobalt miner has a debt of $690m.

Trafigura battery metals head Daniel von Arx told Reuters via email: “We are supportive of Chemaf’s efforts to conclude a successful sale process.”

The deadline for investors to submit non-binding offers was 17 October 2023. Following this, Chemaf may choose to invite certain bidders to undertake a due diligence process.

However, the deadline has now been extended to provide additional time, reported Bloomberg News, citing a person familiar with the matter.

Chemaf is targeting around $1bn in valuation and is considering other options, including a joint venture.