Troilus Gold Secures Offtake Agreement with Aurubis
Troilus Gold Corp. (“Troilus” or the “Company”) (TSX: TLG; OTCQX: CHXMF; FSE: CM5R) has taken a significant step forward by agreeing to commercial offtake terms with Aurubis AG, a prominent global copper smelter. This strategic partnership is poised to facilitate the offtake of copper-gold concentrate generated from the Troilus Project located in Quebec.
Financial Backing for Troilus Project
The upcoming binding offtake agreement is expected to coincide with the completion of an extensive $700 million debt financing package. This comprehensive package is structured by a consortium of renowned global financial institutions, including Société Générale and Export Development Canada. A noteworthy aspect of this financing is the anticipated support from Euler Hermes Aktiengesellschaft, representing the German Federal Ministry for Economic Affairs and Climate Action. This support is critical, as Troilus has secured in-principle eligibility for an untied loan guarantee of up to $500 million.
Production Outlook and Feasibility Study Insights
Recent analyses highlighted in Troilus’ May 2024 Feasibility Study indicate that the project is set to yield approximately 135.4 million pounds of copper equivalent or around 75,000 wet metric tonnes (WMT) of concentrate annually. The concentrate will incorporate copper, gold, and silver as payable metals, adding substantial value to the project.
Comments from Leadership
Justin Reid, CEO of Troilus Gold, emphasized the importance of this agreement, stating, “Securing indicative offtake terms with a leader like Aurubis is a crucial milestone in our journey towards the construction of the Troilus Mine. This partnership will enhance our readiness, both technically and financially, as we progress with the project.” He further noted the historic collaboration between Canada and Germany, indicating that this strategic alignment is an exciting venture for the company.
Statements from Aurubis
Tim Kurth, COO of Aurubis, added, “Our agreement with Troilus strengthens our portfolio of high-quality concentrates and boosts our competitive edge in the international market. Partnerships like this are essential to our growth, creating long-term value for both parties.”
Details of the Offtake Agreement
The indicative offtake terms encompass essential specifications for the concentrate, including precious metals payabilities, treatment and refining charges, and applicable penalties for any undesirable elements. Initial metallurgical testwork, alongside historic operational data, suggests that penalties outside the established thresholds will likely be avoided.
Role of Ocean Partners in Offtake Strategy
Ocean Partners USA Inc. is serving as the independent third-party advisor for Troilus, offering vital expertise across technical, commercial, and financial domains. Their support has been instrumental in shaping the offtake strategy, enabling Troilus to conduct specialized analyses and foster robust commercial structures for long-term concentrate sales.
Advancing Towards Project Development
Auramet International Inc. is actively engaged in the ongoing structuring of Troilus' debt package and interactions with potential lenders and strategic partners. Troilus Gold remains committed to progressing all elements of the project toward a construction decision and will continue providing updates as development unfolds.
About Troilus Gold Corp.
Troilus Gold Corp. specializes in advancing the historic Troilus Mine towards production. Located in Quebec, Canada, the mine covers a vast land area of 435 km² in the Frôtet-Evans Greenstone Belt, recognized as a tier-one mining jurisdiction. A recently completed feasibility study supports a large-scale, 22-year open-pit mining operation, positioning Troilus as a cornerstone project in North America.
For More Information
Contact: Caroline Arsenault
VP Corporate Communications
+1 (647) 407-7123
info@troilusgold.com
Frequently Asked Questions
What is the significance of the agreement with Aurubis?
The agreement marks a key milestone for Troilus Gold as it secures a reliable offtake partner for its copper-gold concentrate, enhancing project viability.
What are the expected production figures from the Troilus Project?
The Troilus Project is expected to yield approximately 135.4 million pounds of copper equivalent annually, along with gold and silver.
Who are the financial partners involved in the Troilus financing package?
A consortium including Société Générale and Export Development Canada is structuring the up to $700 million debt financing package for Troilus.
How does this agreement impact Troilus Gold's market position?
This agreement strengthens Troilus Gold’s competitiveness in the mining sector by enhancing their strategic partnerships and funding opportunities.
What role does Ocean Partners play in Troilus' strategy?
Ocean Partners is providing independent advisory services to develop and execute Troilus' concentrate offtake strategy, ensuring robust commercial arrangements.
