OceanaGold will sell 100% of the copper and gold concentrate production from its Didipio project in Luzon, northern Philippines to Trafigura, following signing of a heads of agreement.

The offtake deal will be for a period of five years and will be finalized with a binding contract in future.

Under the terms of the agreement, Trafigura will also manage all land and sea transportation from the mine site to smelters.

OceanaGold managing director and CEO Mick Wilkes said the Didipio Project will be commissioned in the fourth quarter of 2012.

"The copper / gold concentrate produced from Didipio will be high quality and we are very pleased with the commercially competitive terms that we have agreed with Trafigura," said Wilkes.

" We look forward to having Trafigura as a partner for the Didipio operation and a successful long term relationship with them."

Trafigura board member Jeremy Weir said, "The concentrate will be delivered to our copper smelting clients throughout Asia."

Trafigura is a commodity trader which specializes in the supply and transport of concentrates, and owns and operates concentrate storage facilities in China and other global locations.