How Antilles Gold Is Funding Cuba’s Nueva Sabana Copper-Gold Mine

Interim Distribution Boosts Project Funding

Antilles Gold Limited (ASX – AAU) has announced receipt of approximately A$3.25 million as an interim distribution from the voluntary liquidation of its former subsidiary, EnviroGold (Las Lagunas) Limited. This cash inflow marks a significant milestone in the company’s ongoing efforts to finance its Cuban mining ventures.

The funds will be deployed as part of a 20-month interest-bearing secured loan totaling US$5 million to Minera La Victoria SA, a 50 – 50 joint venture between Antilles Gold and the Cuban government’s GeoMinera SA. This loan is earmarked to support the construction phase of the Nueva Sabana copper-gold mine located in central Cuba, where construction activities commenced in December 2025.

Strategic Development in Cuban Mining Sector

Antilles Gold’s strategy in Cuba is multifaceted, focusing initially on the relatively modest Nueva Sabana project, which serves as a foundation for future expansion. The company also plans to develop the La Demajagua open pit mine on the Isle of Youth by 2027-28, targeting gold-arsenopyrite and antimony concentrates.

Beyond immediate production, the joint venture intends to reinvest free cash flow from Nueva Sabana into exploration of significant copper targets, including the El Pilar copper-gold porphyry system beneath Nueva Sabana and other promising sites within the Sierra Maestra copper belt. This approach underscores a long-term vision to unlock Cuba’s mineral potential while managing risk through phased development.

Regulatory and Political Backdrop

Operating in Cuba requires navigating a complex regulatory environment, but Antilles Gold expresses confidence in compliance with the country’s Foreign Investment Law and mining and environmental regulations. The Cuban government’s support is evident, notably in approving the arrangement for funds to be held in a foreign bank account, minimizing country credit risk by limiting transfers to local expenses only.

This financial and regulatory framework provides a degree of stability and transparency that is critical for foreign investors in the region, potentially setting a precedent for future mining ventures in Cuba.

Looking Ahead

With the infusion of liquidation proceeds and secured loan funding, Antilles Gold is positioned to advance construction at Nueva Sabana and lay groundwork for subsequent projects. The company’s dual focus on production and exploration could unlock significant value if the copper-gold deposits meet expectations, while ongoing government cooperation remains a key factor in project success.