Question: why raise 650 million for construction.16 Nov 2024 10:09
A question: Why would we raise more money than required to get the final permits and licenses if we were not going to construction.
On July 15, 2024, SolGold secured $750 million in financing for its Cascabel copper-gold project in Ecuador from Canadian miner Franco-Nevada and Bermudan mineral exploration group Osisko:
Financing structure
The financing package includes an initial deposit of $100 million and a construction deposit of $650 million.
Gold stream agreement
In exchange for the financing, SolGold will give Franco-Nevada and Osisko a percentage of the gold produced from the mine. The syndicate will receive 20% of the recovered gold in concentrate until 750,000 ounces of gold have been provided. After that, the percentage will decrease to 12% for the life of the mine.
Project status
The Cascabel project is still in its early stages, and there is uncertainty about it before a pre-feasibility study or defined feasibility study is determined. SolGold estimates that the pre-production capital for the project will be $1.55 billion, which is less than the $2.75 billion estimated in April 2022.