Antilles Gold Secures Funding for Cuban Mining Projects
ANTILLES GOLD LIMITED (AAU) Share Update September 2024 Tuesday 17th
Antilles Gold Raises $1.58 Million for Cuban Mining Projects
Antilles Gold Limited (ASX: AAU, OTCQB: ANTMF) has successfully raised $1.58 million to fund its joint venture mining projects in Cuba, marking a significant step forward in the development of its gold, silver, and copper mines.
Instant Summary:
- Raised $1.58 million through the placement of 394,315,000 Shortfall Shares.
- Funds to be used for development of Nueva Sabana and La Demajagua mines in Cuba.
- Issued 197,157,493 free attaching AAUO options exercisable at $0.01 each by December 2026.
- Contributions to the US$15 million farm-in for Minera La Victoria are at ~US$14.35 million.
- Revised MRE and mine schedule for Nueva Sabana expected within 3-4 weeks.
Funding Details
Antilles Gold Limited has successfully placed 394,315,000 Shortfall Shares at $0.004 per share, raising a total of $1,577,260 before costs. Additionally, the company issued 197,157,493 free attaching AAUO options, which are exercisable at $0.01 each on or before 31 December 2026. This funding will be primarily allocated to the joint venture mining company, Minera La Victoria SA, in Cuba.
The funds will support initial development activities for the Nueva Sabana gold-copper mine and pre-development expenditure for the La Demajagua gold-silver-antimony mine. Contributions to date for the US$15.0 million farm-in to 50% ownership of Minera La Victoria are approximately US$14.35 million.
Project Developments
The company expects to complete a revised Mineral Resource Estimate (MRE) and mine schedule for the first stage of the Nueva Sabana project within the next 3 to 4 weeks. Following this, the financial model will be updated, and efforts will shift towards negotiating an off-take agreement for the gold and copper-gold concentrates that will be produced, as well as securing construction funding.
The aim is to finalize initial development costs for the Nueva Sabana mine, including engineering for the long-lead concentrator and associated mine infrastructure, by the end of the year. Construction of the mine is slated to begin in December 2024, with commissioning expected 12 months later, subject to finalizing an acceptable financing Term Sheet in October/November.
La Demajagua Project
Near-term expenditure on the La Demajagua mine will focus on preliminary engineering for the proposed concentrate processing facility and antimony recovery circuit. This will allow a Chinese engineering group to prepare an offer for the turnkey design and construction of the facility. A Scoping Study for the expanded project is expected to be completed early next year, reflecting the production of approximately 4,800 tonnes per annum of antimony as a by-product to gold and silver production over the planned 9-year Life of Mine (LoM).
Antimony, a critical metal currently priced at around US$26,000 per tonne, is predicted by traders to increase to approximately US$30,000 per tonne by the end of this year. The La Demajagua project is expected to be development-ready by Q4 2025.
The successful funding round is a positive development for Antilles Gold, enabling the company to advance its mining projects in Cuba. The raised capital will facilitate crucial development activities, potentially enhancing the company's production capabilities and revenue streams. This announcement is likely to boost investor confidence and positively impact the company's stock price.
Investor Reaction:
Analysts are likely to view this funding announcement favorably, as it demonstrates Antilles Gold's ability to secure necessary capital for its projects. The focus on critical metals like antimony, which is in high demand, adds further appeal to the company's prospects. However, investors will be keen to see the timely execution of development milestones and the successful negotiation of off-take agreements.
Conclusion:
Antilles Gold's recent funding success marks a significant step forward in its Cuban mining ventures. Investors should keep an eye on upcoming project developments and financial updates to assess the long-term potential of their investments. The company's strategic focus on critical metals positions it well for future growth.