Troilus Gold Secures Major Financing Mandate for Quebec Project

In a significant move for the Canadian mining sector, Troilus Gold Corp. (TSX: TLG, OTCQX: CHXMF) has taken a crucial step towards financing its ambitious gold-copper project in Quebec. The company has executed a mandate letter with a syndicate of global financial institutions to arrange a project debt financing package of up to US$700 million.

The syndicate, which includes Societe Generale, KfW IPEX-Bank, and Export Development Canada (EDC), brings substantial expertise in structuring finance for large-scale mining developments. This latest development follows Troilus Gold’s earlier success in securing letters of intent from global export credit agencies totaling up to US$1.3 billion.

Justin Reid, CEO of Troilus, emphasized the significance of this milestone: “This mandate with globally recognized financial institutions is pivotal in delivering a fully funded construction package for the Troilus project. Their participation validates the project’s strong fundamentals and strategic importance”.

The Troilus Gold-Copper Project, located in north-central Quebec, is positioned to become a cornerstone mining operation in North America. A feasibility study completed in May 2024 supports a large-scale, 22-year open-pit mining operation with a 50,000 tonnes per day capacity.

The project’s economics are compelling. At a gold price of $2,000 per ounce, the operation is projected to generate over US$150 million in annual free cash flow. This figure could rise to approximately US$300 million at current gold prices.

Troilus Gold’s financing strategy extends beyond this recent mandate. The company is advancing other non-dilutive components of the project financing and negotiating off-take agreements with domestic and foreign smelters.

The next phase of the financing process involves detailed technical, financial, and environmental & social due diligence by the mandated lead arrangers. This process will be crucial in structuring the definitive project debt package, with financial close targeted for before the end of 2025.

Parallel to these financing efforts, Troilus Gold is progressing on other fronts. The company is finalizing its Environmental and Social Impact Assessment (ESIA) submission and advancing basic and detailed engineering work with BBA Inc.

The Troilus project boasts a significant resource base of 13 million ounces equivalent, with potential annual production ranging from 300,000 to 500,000 ounces over its 22-year mine life.

As Troilus Gold moves closer to realizing its vision for the Troilus project, it represents a notable development in Canada’s mining sector. The project’s scale, strategic importance, and the strong financial backing it has attracted underscore its potential impact on the industry and the Quebec economy.

With detailed engineering, permitting, and financing efforts advancing in parallel, Troilus Gold appears to be on track with its development schedule. The coming months will be crucial as the company works towards finalizing its financing package and moving the Troilus project towards construction.

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