Troilus Gold Secures Preliminary US$500 Million Loan Guarantee for Quebec Copper and Gold Project

Troilus Gold has secured a preliminary agreement for a US$500-million loan guarantee from Germany's Euler Hermes Aktiengesellschaft to support its copper and gold project in Quebec. The guarantee, issued on behalf of Germany's Ministry for Economic Affairs and Climate Action, is contingent upon Troilus signing an offtake agreement with German copper smelter Aurubis.

The offtake agreement, which would last for up to 15 years, remains subject to standard due diligence, including economic, technical, environmental, and social assessments. This guarantee represents a significant financial endorsement for the Troilus project, highlighting its economic potential and strategic value.

Troilus Gold's shares surged 13.7% in early trading following the announcement, reaching 27¢ in the afternoon, marking an increase of 5.8% for the day. The company's market capitalization currently stands at $98 million.

"This LOI is a strong endorsement of the Troilus project's significant economic potential and strategic value," said Justin Reid, CEO of Troilus Gold. "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."

According to a feasibility study released in May, initial development costs for the Troilus project are estimated at just over US$1 billion. The project envisions a 22-year open-pit mining operation with a processing capacity of 50,000 tonnes per day. The mine is expected to produce an average of 303,000 gold-equivalent ounces (GEOs) annually, or approximately 135.4 million pounds of copper-equivalent, with peak production reaching 536,400 GEOs or 237.6 million pounds of copper-equivalent per year.

The Troilus mine originally began production in 1996 and reached commercial production the following year. Over its operational life, the mine produced 2 million ounces of gold and about 154.3 million pounds of copper. By 2005, the mill's capacity had been doubled to 20,000 tonnes per day. Mining activities ended in April 2009, though milling operations continued until June 2010. The plant was subsequently sold, and the camp was dismantled three months later.