Antilles Gold Limited Secures Funding for Nueva Sabana Copper-Gold Mine Development

Strategic Insights -

Antilles Gold Limited has announced plans to raise $650,000 through a placement of 130 million shares at $0.005 each to sophisticated investors. The funds will be used to support the development of the Nueva Sabana copper-gold mine in Cuba by 50% owned joint venture mining company, Minera La Victoria SA. The company is also confident that documentation for the proposed transaction with Chinese mining and engineering group, Xinhai Mining, will be executed this month, paving the way for a placement of 590 million shares to a nominee of Xinhai at $0.007 to raise $4,130,000 before costs.

Key Takeaways:

  • Antilles Gold Limited plans to raise $650,000 through a placement of 130 million shares at $0.005 each to sophisticated investors.
  • The funds will be used to support the development of the Nueva Sabana copper-gold mine in Cuba by 50% owned joint venture mining company, Minera La Victoria SA.
  • The company is confident that documentation for the proposed transaction with Chinese mining and engineering group, Xinhai Mining, will be executed this month.
  • Xinhai Mining has agreed to undertake a fixed price US$29.5 million engineering, procurement, and construction contract ("EPC") for the Nueva Sabana mine, representing ~85% of the development activities by value.
  • Xinhai Mining will provide credit of US$17.7 million for the project by deferring 60% of its monthly progress claims for up to 2 years after the 12 month construction period is completed.
  • Xinhai Mining is working to arrange ~US$20.0 million of project financing required by Minera La Victoria SA to complete the development.
  • The current placement will provide funding for several months at the current reduced expenditure in the event the placement to Xinhai's nominee is delayed.

Statistics:

  • $650,000: The amount of funds to be raised through the placement of 130 million shares at $0.005 each.
  • $4,130,000: The amount of funds to be raised through the placement of 590 million shares to a nominee of Xinhai Mining at $0.007.
  • 85%: The percentage of development activities by value to be undertaken by Xinhai Mining under the fixed price EPC contract.
  • $29.5 million: The value of the fixed price EPC contract to be undertaken by Xinhai Mining.
  • $17.7 million: The value of the credit to be provided by Xinhai Mining for the project.
  • 60%: The percentage of monthly progress claims to be deferred by Xinhai Mining for up to 2 years after the 12 month construction period is completed.
  • $20.0 million: The amount of project financing required by Minera La Victoria SA to complete the development.

Sources:

  • Antilles Gold Limited (ASX: AAU) - News Release, dated [No Date Mentioned]