Antilles Gold Limited (ASX: AAU) has announced a major milestone for its flagship Nueva Sabana Copper-Gold Project in Cuba, with the signing of two comprehensive concentrate offtake agreements. The agreements were executed between Minera La Victoria SA, the 50:50 joint venture company established with the Cuban government, and a leading global commodities trading house.
These binding agreements cover the full output of gold concentrates and copper/gold concentrates from the Nueva Sabana mine and represent a significant commercial validation of the project as it moves towards the development phase.
Improved Commercial Terms Strengthen Project Economics
The offtake terms improve upon those projected in the Pre-Feasibility Study (PFS) released to the ASX on January 13, 2025. Specifically, payables for gold concentrates are 12% higher than previously estimated, enhancing the project’s forecast revenues. Terms for copper/gold concentrates are consistent with PFS estimates, and pricing will remain market-based.
The Nueva Sabana mine, which is fully permitted and targeted to begin construction within the next three months, has an initial mine life of approximately 4.5 years, though this could be extended with further exploration.
Key Terms of the Offtake Agreements
100% of Gold and Copper/Gold Concentrates from the Nueva Sabana mine are covered by the agreements.
Provisional Payments of 90% of the shipment value will be made within 5 business days of loading and documentation completion.
Pricing will be based on the LBMA AM/PM Gold Price, Metal Bulletin Copper Price (Grade A), and LBMA Silver Price, averaged over the agreed quotational period.
Final Invoicing and Settlement will occur within 5 business days of receipt of final assays and weights.
Shipping Schedule: Concentrate shipments will be evenly distributed across the calendar year, in minimum lots of ~1,000 dry metric tonnes, roughly equivalent to two weeks of production.
No Minimum or Maximum Volume Commitments, offering operational flexibility.
Defined Default Provisions: Include rights to suspend or terminate the agreement if contractual obligations are breached.
The identity of the counterparty, a global trading firm with multi-billion-dollar revenues and a significant presence in metals and minerals, has not been disclosed. Antilles Gold has stated that this omission is not considered materially significant to its securities’ valuation under ASX disclosure rules.
Financing Progress and Project Timeline
Antilles Gold Chairman Mr. Brian Johnson hailed the offtake agreements as a “major step forward” for the Nueva Sabana development.
“Finalisation of the concentrate off-take agreements is a major step forward in arranging financing for the Nueva Sabana project,” said Mr. Johnson. “Positive negotiations are progressing with potential lenders for mine construction funding. With permitting complete, we aim to finalise project financing within the next three months and commence construction, with commissioning targeted within 12 months thereafter.”
The company also confirmed that all material assumptions underpinning its production target and financial forecasts, as per previous ASX announcements dated October 2, 2024, and January 13, 2025, remain valid and unchanged.
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