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Construction|Copper|Crushing|Engineering|flotation|Flow|Gold|Mining|PROJECT|Flow|Drilling
Construction|Copper|Crushing|Engineering|flotation|Flow|Gold|Mining|PROJECT|Flow|Drilling
construction|copper|crushing|engineering|flotation|flow-company|gold|mining|project|flow-industry-term|drilling

Antilles adjusts funding strategy for Cuba copper/gold mine

31st March 2025

By: Creamer Media Reporter

     

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Australia-listed Antilles Gold on Monday announced a revised funding approach to the development of the Nueva Sabana copper/gold mine in Cuba, as the previously expected $27-million prepayment on concentrate purchases is no longer available.

The company's wholly owned subsidiary, Antilles Gold Inc (AGI), now plans to purchase the gold and copper/gold concentrates from the mine and sell them to an international commodities trader. AGI is in negotiations with several traders which offer prepayment arrangements, aiming to secure a minimum prepayment of $10-million under a four-year offtake agreement.

To cover the remaining funding requirements, AGI intends to borrow about $20-million and on-lend the combined funds to Minera La Victoria SA (MLV), the 50%-owned Cuban joint venture company overseeing the mine’s development. 

The company has received expressions of interest for the short-term loans and has begun preliminary negotiations with potential lenders.

While the revised funding approach is more complex than the originally planned prepayment covering the majority of construction costs, Antilles remains optimistic about finalising agreements that will facilitate the mine’s development.

Nueva Sabana, which is slated for construction in 2025, is projected to cost $32.2-million, including contingencies and interest. An updated scoping study was completed in November 2024.

The initial stage of the mine has a planned life of four years, with a forecasted total free cash flow of A$145.3-million, a net present value, using an 8% discount, of A$109.1-million, and an internal rate of return of 57.92%.

Chinese engineering firm Yantai Jinpeng will supply the mine’s crushing, grinding, and flotation circuits. The company also anticipates that further drilling and a lower mining depth could significantly extend the project’s life and value by increasing gold inventory and expanding the copper zone’s boundaries.

Edited by Creamer Media Reporter

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