SolGold PLC (LSE:SOLG, TSX:SOLG, OTC:SLGGF), the mining group, confirmed it received a US$750 million financing package for its Cascabel Project, as part of a syndicated gold stream agreement with Franco-Nevada and Osisko.
As per the deal, SolGold will receive the cash in return for a percentage of the gold produced at the project.
The financing is structured in two parts: an initial deposit of US$100 million and a construction deposit of US$650 million.
The initial deposit will be disbursed in three tranches, with the first tranche expected to be received later today.
This portion is allocated for de-risking, permitting, and completion of the feasibility study, while a construction deposit will support the project's development phases.
Scott Caldwell, president and CEO of SolGold, said: “We are thrilled to finalise this transformative US$750 million gold stream with Franco-Nevada and Osisko.
“This Agreement not only secures a significant portion of the capital required to fund the construction of Cascabel but also validates the vast potential of the Cascabel Project."
Jason Attew, president and CEO of Osisko Gold Royalties (TSX:OR), commented: "Cascabel represents one of the most significant copper-gold discoveries in recent history. The project has the potential to become a world-class multi-generational mine."