Canada’s Troilus Gold has secured support for its copper and gold project in Quebec, with a letter of intent (LOI) for a loan guarantee of up to $500m (C$700.71m) from Euler Hermes, acting on behalf of the German Federal Ministry for Economic Affairs and Climate Action.
This guarantee is contingent upon a long-term commercial offtake agreement with German copper smelter Aurubis.
The LOI from Euler Hermes marks a pivotal achievement in establishing a robust financing framework for the Troilus Project.
This development is expected to be supplemented by additional funding avenues, as Troilus is engaged in advanced discussions with other potential partners including smelters, export credit agencies, commercial banks and global mining finance institutions.
Following the release of a positive feasibility study in May 2024, Troilus has been proactive in its financing efforts.
This study outlines a 22-year life for the open-pit mine, with an impressive annual production forecast of 303,000 gold equivalent ounces, peaking at 536,400oz.
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By GlobalData
The project’s potential to become one of North America’s largest undeveloped copper and gold resources has garnered significant attention from financial institutions globally.
Its importance is underscored by its substantial projected output and its strategic role in providing essential minerals to the international market.
Troilus CEO Justin Reid said: “This LOI is a strong endorsement of the Troilus Project’s significant economic potential and strategic value.
“Following an extremely active third quarter, we are now in advanced discussions with other export credit agencies, off-takers and financiers, as we work towards securing a comprehensive financing package for the project’s construction.
“With rising European demand for copper concentrate and our advantageous proximity to these markets, we are advancing through financing discussions from a solid strategic position.”
