SolGold Secures $750 Million Financing for Cascabel ProjectSolGold Secures $750 Million Financing for Cascabel Project SolGold (LON: SOLG, TSX: SOLG) has announced a $750 million project financing agreement with Franco-Nevada (70%) and Osisko Bermuda (30%) for its Cascabel project in Ecuador. The Ecuadorian government supports the project, which is seen as a major economic boost for the country. The project is the largest investment in Ecuador’s mining history, with an ore reserve of approximately 540 million tonnes containing copper, gold, and silver. The project’s operating contract allows SolGold greater autonomy and decision-making power. The company plans to commence geotechnical drilling, metallurgical testing, and other development activities. The project’s reserves and resources are substantial, and there is potential for further expansion. This could lead to an extension of the initial 33-year term of the agreement. SolGold’s shares rose 16% after the announcement of the financing agreement. The company is excited to move forward with the next phase of the project, which will focus on further development and feasibility studies.
This morning SolGold (LON: & TSX: SOLG) announced that it has entered into a syndicate with Franco-Nevada (70%) and Osisko Bermuda (30%) to provide $750 million in project financing for its prime Cascabel project in Ecuador.
The Ecuadorian government strongly supports the Cascabel project and recognizes its potential to significantly boost the Ecuadorian economy.
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The Cascabel project is the most important investment in Ecuador’s mining history.
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Last month, the company signed an operating contract with the government, increasing the company’s autonomy and freedom to make commercial decisions about the mine’s technical design, investment amount and production capacity.
The planned mine is based on a ‘proven and probable’ ore reserve of ~540 million tonnes averaging 0.60% copper, 0.54 g/t gold and 1.6 g/t silver, with 3.2 million tonnes grading copper, 9.4 moz gold and 28 moz silver, with 85% of the reserve tonnage falling within the high confidence ‘proven’ classification of the CIM reporting codes.
The ore reserves are comprised of 3.01 billion tonnes of ‘measured and indicated’ resources averaging 0.35% copper, 0.28 g/t gold and 0.94 g/t silver (reported as 0.52% on a copper equivalent basis).
It is believed that the conversion of at least some of these resources and the potential identification of additional resources during mining may create the need to extend the agreement beyond its initial 33-year term.
SolGold plans to immediately commence the next phase of the project, which will focus on geotechnical drilling of the tailings storage facility, additional metallurgical testing, reserve definition at the Tandayama-Ameríca deposit, hydroelectricity options, plant location, and mine site design and layout. Also possible are securing necessary access rights for infrastructure and commencing the feasibility study.
This morning’s good news saw the group’s shares rise 16% to 10.30p.
