Troilus Gold Partners with Boliden for Copper-Gold Offtake
Troilus Gold Corp. (“Troilus” or the “Company”) (TSX: TLG; OTCQX: CHXMF; FSE: CM5R) is excited to announce that it has reached an indicative commercial offtake agreement with Boliden Commercial AB. This partnership is centered around the sale of copper-gold concentrate anticipated to be extracted from Troilus’ mining project located in Quebec. Boliden stands as a premier global entity in base and precious metals, operating multiple mines and smelters across Sweden, Finland, Norway, Ireland, and Portugal.
Significance of the Agreement for Troilus
This collaboration marks the second significant offtake partnership for Troilus, enhancing its strategic outreach following a similar agreement with Aurubis AG. These partnerships underscore the assurance in Troilus' project potential and illustrate its integral role in the European critical minerals supply chain.
Project Production Estimates
According to the Company’s Feasibility Study completed recently, the Troilus Project is poised to yield an average of approximately 135.4 million pounds of copper equivalent annually, which translates to 75,000 wet metric tonnes of concentrate rich in payable copper, gold, and silver.
Comments from Leadership
Justin Reid, CEO of Troilus Gold, expressed pride in collaborating with a respected mining and smelting player such as Boliden. He reflected on their historical relationship dating back to when Boliden processed initial concentrates from the site. This new alignment with key stakeholders within Europe’s critical minerals ecosystem not only boosts Troilus' credibility but also highlights the premium quality of its products.
Financial Framework Surrounding the Offtake Agreements
Execution of binding offtake agreements with Boliden and Aurubis is anticipated alongside the completion of a substantial US$700 million debt financing package. This financial structure is being coordinated by a consortium of prominent financial institutions, including Société Générale, KfW IPEX-Bank, and Export Development Canada (EDC). Moreover, support is expected from various European export credit agencies to facilitate equipment procurement and corroborate long-term offtake agreements.
Details of Offtake Terms
The preliminary offtake terms outline essential specifications for concentrate quality and remuneration for precious metals, inclusive of applicable treatment and refining fees. Preliminary metallurgical assessments together with historical operational data suggest that penalties for deleterious elements are unlikely beyond the stipulated thresholds in the agreement.
Future Strategy and Ongoing Developments
Auramet International Inc. remains actively involved in structuring the debt package and engaging with lenders, while Ocean Partners USA Inc. serves as Troilus' advisor for developing and negotiating its concentrate offtake strategy.
Troilus maintains its focus on propelling all aspects of the project towards a construction decision, with further updates to be shared as developments unfold. The completed NI 43-101 technical report tied to the Troilus Project Feasibility Study is accessible on SEDAR+ under Troilus' issuer profile or directly on the Company’s website.
About Troilus Gold Corp.
Troilus Gold Corp. is a mining development company based in Canada. It is dedicated to meticulously progressing the former Troilus Mine, known for its gold and copper deposits, towards a production phase. Located within a top-tier mining jurisdiction, the project covers a substantial land area of 435 km² in the Frôtet-Evans Greenstone Belt. The recent Feasibility Study confirms plans for a long-term, large-scale open-pit mining operation to establish it as a foundational project in North America.
For Further Inquiries
Caroline Arsenault
VP Corporate Communications
+1 (647) 276-0050
info@troilusgold.com
Frequently Asked Questions
What is the importance of the offtake agreement?
The offtake agreement solidifies Troilus' market strategy, ensuring a reliable outlet for its copper-gold concentrate and enhancing its credibility among stakeholders.
How does the Troilus Project contribute to the mining industry?
The Troilus Project is positioned to provide significant copper and gold outputs, supporting the global demand for critical minerals while advocating for sustainable mining practices.
Who are Troilus Gold's partners in this venture?
Troilus Gold is partnering with Boliden Commercial AB and Aurubis AG as key contributors in the copper-gold supply chain, reaffirming the project’s viability and strategic location.
What role do environmental considerations play in Troilus’ strategy?
Troilus emphasizes responsible sourcing and environmental stewardship, having filed an Environmental and Social Impact Assessment to align with regulatory standards and community expectations.
What are the expected outputs from the Troilus Project?
The Troilus Project is expected to produce an average of around 135.4 million pounds of copper equivalent annually, along with sizeable quantities of gold and silver.
