Troilus Gold (TSX: TLG) continues to make significant strides in securing financial support for its flagship copper-gold project in Quebec. Backed by global export credit agencies (ECAs), the company has now reached a milestone with potential funding commitments totaling $1.3 billion.
New Backing from Export Development Canada
On Thursday, Troilus Gold announced a letter of intent (LOI) from Export Development Canada (EDC) for up to $300 million. This marks another pivotal step, following earlier LOIs from the export credit agencies of Germany, Finland, and Sweden. Together, these commitments form a robust foundation for a multi-faceted financing structure that paves the way for Troilus to become a leading North American copper and gold producer.
EDC’s funding commitment underscores the project’s alignment with Canada’s critical minerals strategy. However, the funding remains subject to EDC’s rigorous due diligence process, which includes assessments of economic, technical, environmental, and social factors.
In 2023, EDC—a financial Crown corporation owned by the Canadian government—facilitated over $8 billion in business through its customers in the mining sector, highlighting its significant role in advancing Canadian mining projects.
Advancing a Flagship Project in Quebec
Troilus Gold is focused on the development of its copper-gold project in Quebec’s Val-d’Or district. The property, which previously operated as a mine from 1996 to 2010, produced 2 million ounces of gold and nearly 70,000 tonnes of copper.
The company’s May 2024 feasibility study demonstrated the project’s potential to rank among Canada’s largest gold producers. Highlights include:
- Estimated Mine Life: 22 years
- Average Annual Production: 303,000 gold-equivalent ounces, peaking at 536,400 ounces
- After-Tax NPV (5%): $884.5 million
- Internal Rate of Return: 14%
- Initial Capital Costs: $1.07 billion for a 50,000-tonne-per-day open-pit mine
These figures reflect the project’s strong economic potential and its strategic importance to the global supply of critical minerals.
A Boost in Investor Confidence
Following the announcement of the EDC LOI, Troilus Gold’s shares surged 9.6% to C$0.28, bringing its market capitalization to just over C$107 million. This significant rebound indicates growing investor confidence in the company’s ability to deliver on its ambitious plans.
Conclusion
Troilus Gold’s recent success in securing financial backing from multiple ECAs reinforces its standing as a key player in North America’s critical minerals landscape. With a robust project pipeline and strong governmental support, the company is well-positioned to advance its copper-gold project toward production, contributing to Canada’s resource objectives and global leadership in mining innovation.
