Troilus Gold Corp. (TSX: TLG; OTCQX: CHXMF; FSE: CM5R) has taken a significant step toward bringing its Quebec-based copper-gold project into production, reaching an agreement on commercial offtake terms with Aurubis AG, one of the world’s leading copper smelters based in Hamburg, Germany. This agreement sets the stage for Troilus to supply copper-gold concentrate from its flagship Troilus Project, as the company works to finalize broader project financing and construction plans.
The offtake agreement with Aurubis is not yet binding, but both parties have agreed on the main commercial terms. The final contract is expected to be signed alongside the completion of Troilus’ debt financing package, which could total up to $700 million. This financing is being put together by a syndicate of international banks, including Société Générale, KfW IPEX-Bank, and Export Development Canada. Additionally, Euler Hermes, representing the German government, has issued a letter of intent for up to $500 million, confirming Troilus’ eligibility for an untied loan guarantee.
For Troilus, the Aurubis deal marks a practical step forward. “Reaching an agreement on indicative offtake terms with a world-class partner like Aurubis marks a key milestone as we advance toward construction of the Troilus Mine,” said Justin Reid, CEO of Troilus Gold. He emphasized that the agreement reflects both the quality of the concentrate the company expects to produce and the technical and financial progress of the project.
According to the company’s May 2024 Feasibility Study, the Troilus Project is expected to produce an average of 135.4 million pounds of copper equivalent per year, or about 75,000 wet metric tonnes of concentrate annually. The concentrate will contain copper, gold, and silver, all of which are payable metals under the offtake terms.
The mine, located in the Frôtet-Evans Greenstone Belt in north-central Quebec, is designed as a large-scale, 22-year open-pit operation processing 50,000 tonnes per day. Troilus holds a substantial land position of 435 square kilometers in this established mining region, positioning the project as one of North America’s more significant new copper-gold developments.
While the full terms are not public, the agreement covers anticipated concentrate specifications, payabilities for precious metals, treatment and refining charges, and penalties for any deleterious elements. Metallurgical testwork and historical data suggest that the concentrate should meet Aurubis’ requirements without triggering penalties outside the agreed thresholds.
Tim Kurth, COO of Aurubis AG, commented, “The agreement with Troilus further strengthens our global raw material portfolio with high-quality concentrates and reinforces our competitive position in the international market. Leveraging our broad network and expertise in processing diverse raw material qualities, we create long-term planning security and mutual value for both partners. Partnerships like this are an integral part of our growth strategy”.
Troilus has engaged Ocean Partners USA Inc. as its independent advisor for the concentrate offtake strategy. Ocean Partners has played a key role in analyzing the market and structuring the commercial arrangements to support long-term concentrate sales. Auramet International Inc. is also advising on structuring the debt package and engaging with potential lenders and strategic partners.
The company remains focused on moving all aspects of the project toward a construction decision, with further updates expected as financing and agreements are finalized.
With the Aurubis offtake agreement in place, Troilus Gold is positioned to advance the Troilus Project toward construction and, ultimately, production. The combination of a major offtake partner, a robust financing package, and a long-life mining plan in a stable jurisdiction puts the company in a strong position as it prepares to become a new supplier of copper, gold, and silver to the global market.