The Alpala project is a copper-gold porphyry deposit located in the Imbabura province in northern Ecuador
SolGold is in discussions for a funding package for the Alpala Project. (Credit: SolGold)
SolGold revealed that it is currently engaged in discussions focused on securing a funding package of about $2.85bn for the development of its Alpala project in Ecuador.
Alpala is the company’s flagship project and is a copper-gold porphyry deposit located in the Imbabura province in northern Ecuador.
SolGold said that the financing package includes up to $150m in the shorter-term for two years to help fund the definitive feasibility study (DFS) of the copper-gold project. About $2.7bn is estimated to be required to meet the longer-term development capital expenditure of the Alpala Project.
The copper gold exploration-stage company said that the longer-term funding is being negotiated and targeted to be signed with a variety of financiers and third-parties on a conditional basis.
The agreements will be subject to finalisation of the project’s definitive feasibility study, permitting, and fiscal agreements with the Ecuadorean government.
The company stated: “The Funding discussions for finalising the DFS and SolGold’s share of pre-development costs are progressing encouragingly. If an agreement is reached, finalisation and settlement could take up to eight weeks.”
SolGold moving ahead with a PFS on the Alpala Project
Currently, SolGold said that it is moving ahead with work on the pre-feasibility study (PFS) along with work streams to acquire more information for wrapping up the proposed definitive feasibility study.
Subject to funding and land acquisition programmes, SolGold is looking to complete the studies by the third quarter of this year for the pre-feasibility study and by end of the first quarter of 2021 for the definitive feasibility study.
According to SolGold, the Alpala project is the main target in the Cascabel concession. The 50km2 tenement area is located on the northern section of the Andean Copper Belt.