Antilles Gold’s US$30M Joint Venture Advances with EPC Contract Signed

Joint Venture Progress and Strategic Partnerships

Antilles Gold continues to advance its Cuban mining operations through its 50 – 50 joint venture with GeoMinera, Minera La Victoria SA (MLV). The partnership is focused on developing the Nueva Sabana gold-copper mine and the La Demajagua gold-antimony-silver mine, alongside exploration of promising porphyry copper concessions.

A significant milestone was reached with the signing of a non-binding Letter of Intent with Chinese mining giant Xinhai Mining. This agreement envisages Xinhai undertaking an engineering, procurement, and construction (EPC) contract for Nueva Sabana at a fixed price of US$29.5 million, coupled with a credit facility deferring 60% of monthly progress payments for up to two years post-construction. This arrangement not only secures a major contractor but also eases upfront capital demands.

Project Financing and Capital Structure

The joint venture’s founding capital stands at US$30 million, equally contributed by Antilles Gold and GeoMinera, with Antilles Gold’s US$15 million subscription spread over four years. Additional loans of approximately US$1 million have been extended to MLV by Antilles Gold to cover pre-development costs. The company is actively pursuing further financing options, including prepayments on concentrate sales and traditional project financing, to cover the remaining US$38 million required for Nueva Sabana’s construction phase.

Antilles Gold also plans a placement of 590 million shares to Xinhai Mining or its nominee, raising around A$4.1 million, further cementing the strategic partnership.

Project Updates and Exploration Focus

The Nueva Sabana project is construction-ready, with a revised Mineral Resource Estimate and Preliminary Feasibility Study confirming a 4.5-year mine life at a mining rate of approximately 500,000 tonnes per annum. Metallurgical testing supports an initial 18-month production of gold concentrate followed by copper-gold concentrate for 36 months.

Meanwhile, the La Demajagua project is slated for development in 2027-28, with a nine-year open pit mine life and potential underground operations thereafter. Notably, antimony production is gaining importance due to soaring prices, with plans to produce high-purity antimony cathodes and possibly ingots in collaboration with Xinhai Mining.

Exploration efforts remain concentrated on the El Pilar porphyry copper concession, with previous drilling confirming significant copper-gold mineralisation. Additional concessions in the Sierra Maestra copper belt, including La Cristina and Vega Grande, offer promising targets for future exploration, although no substantive activity is planned in the near term.

Financial Position and Outlook

During the June quarter, Antilles Gold reported ongoing expenditure on pre-development and exploration activities, with cash on hand at A$726,000. The company maintains a loan facility of A$1 million from a related party, providing additional liquidity. No exploration activities are planned for the upcoming quarter, as focus shifts to finalising joint venture approvals, EPC contracts, and project financing arrangements.