Troilus Gold Secures Up to $500 Million in Financing Through Scandinavian Export Credit Agencies

Troilus Gold Corp. (OTCQX: CHXMF) has made significant strides in its project financing efforts, recently announcing two Letters of Intent (LOIs) that could secure an additional $500 million for its Troilus Project, a major copper and gold development located in Quebec, Canada. The LOIs come from Finnvera plc, Finland’s official export credit agency, and Sweden’s Export Credit Agency (EKN), which together could provide up to $500 million to support the project’s advancement.

The Troilus Project is positioned as one of North America’s largest undeveloped copper and gold assets. The feasibility study completed in May 2024 outlines plans for a 22-year open-pit mining operation with a processing capacity of 50,000 tonnes per day. The project is projected to produce an average of 303,000 gold-equivalent ounces annually and approximately 135.4 million pounds of copper equivalent each year, peaking at 536,400 gold-equivalent ounces or 237.6 million pounds of copper equivalent.

This robust economic profile has attracted significant institutional interest from financial entities worldwide. As demand for copper continues to rise—especially in Europe—Troilus Gold’s strategic location near key markets enhances its attractiveness as a viable investment opportunity.

The LOI from Finnvera offers an untied loan guarantee of up to $300 million, contingent upon forming strategic partnerships with Finnish equipment providers and Boliden, one of Europe’s largest smelting companies. This collaboration is expected to involve equipment procurement valued between $50 million and $100 million and a 10-year offtake agreement for copper-gold concentrate with Boliden, estimated at an annual value of around $200 million. Meanwhile, EKN will cover approximately $200 million or up to 25% of the offtake agreement under Sweden’s Raw Material Guarantee.

These new agreements follow a recent LOI for $500 million from Euler Hermes, representing the German Federal Ministry for Economic Affairs and Climate Action. This combination of support from premier European credit agencies significantly enhances Troilus’s ability to secure a comprehensive financing package necessary for the project’s development.

Justin Reid, CEO of Troilus Gold, expressed optimism regarding these developments. He stated, “With the addition of $500 million in LOIs from Finnvera and EKN, we have now received in-principle support representing a significant percentage of the Project’s total capital expenditure.” Reid emphasized that this backing underscores the Troilus Project’s strategic importance on an international scale and reflects the confidence that global institutions have in its fundamentals.

Troilus Gold is focused on advancing its financing strategy while moving towards the development phase of the Troilus Project. The recent LOIs are seen as a strong foundation for future financial arrangements.

Troilus Gold Corp. remains committed to finalizing its financing strategy and advancing the Troilus Project toward production. The company anticipates providing further updates on its financing framework in the coming weeks and months as it works closely with Auramet International Inc., which is assisting with structuring and identifying potential financing participants.

Related posts