Troilus Gold brings potential funding from ECAs to $1.3 billion

Troilus Gold (TSX: TLG) continues to receive the financial backing of global export credit agencies (ECAs), this time from Export Development Canada (EDC), to support the development of its copper-gold project in Quebec.

On Thursday, the company announced a new letter of intent (LOI) from EDC for up to $300 million. This, together with the LOIs recently signed with the export credit agencies of Germany, Finland and Sweden, brings the total potential funding to $1.3 billion.

These LOIs provide a robust foundation for a multi-faceted financing structure and further solidifying the Troilus project’s path toward becoming a significant North American copper and gold producer, the company stated in a news release.

The EDC funding is subject to its rigorous due diligence process, including but not limited to, economic, technical, environmental and social, it added. A financial Crown corporation owned by the Canadian government, EDC facilitated more than $8 billion in business through its customers in the mining sector in 2023.

“As a Canadian company, this support from EDC reinforces the Troilus project’s importance to Canada’s critical minerals strategy and broader resource objectives, while highlighting our nation’s leadership in advancing domestic projects with global significance,” commented CEO Justin Reid.

Troilus is focused on advancing its flagship copper-gold project located in the Val-d’Or district of Quebec towards production. The property hosts a former mine that produced 2 million oz. of gold and almost 70,000 tonnes of copper between 1996 and 2010.

In May, the company produced a feasibility study that demonstrated the potential for Troilus to be among the largest gold producers in Canada. Over an estimated 22-year mine life, its annual production in gold equivalent would average 303,000 oz., with peak production of 536,400 oz.

As outlined in the feasibility report, the project has an after-tax net present value (at 5% discount) of $884.5 million and an internal rate of return of 14% under the base case scenario. The initial capital cost to build the 50,000-tonne-per-day open pit mine is estimated at approximately $1.07 billion.

Shares of Troilus Gold rebounded sharply following the new LOI announcement, up 9.6% to C$0.28 apiece by 12:15 p.m. in Toronto. The company’s market capitalization is just over C$107 million ($77m).