Troilus Gold has reached an agreement on indicative commercial offtake terms with Aurubis for copper-gold concentrate from its Troilus Project in Quebec, Canada.
The final binding agreement is expected to coincide with the completion of a debt financing package of up to $700m, structured by a syndicate including Société Générale, KfW IPEX-Bank, and Export Development Canada.
This financing may also receive support from Euler Hermes Aktiengesellschaft, representing Germany’s Federal Ministry for Economic Affairs and Climate Action, which has issued a letter of intent for up to $500m.
The Troilus Project aims to produce approximately 135.4 million pounds of copper equivalent annually. The concentrate will contain copper, gold, and silver.
The agreed terms specify concentrate specifications and charges for treatment and refining, as well as penalties for any deleterious elements. Current metallurgical test results suggest no penalties outside the agreed thresholds.
Troilus Gold CEO Justin Reid said: “Reaching an agreement on indicative offtake terms with a world-class partner like Aurubis marks a key milestone as we advance toward construction of the Troilus Mine. This agreement enhances both the technical and financial readiness of the project and reflects the quality of concentrate we expect to produce.
“Canada and Germany have a long-standing and collaborative relationship, and we are proud to contribute to that through this strategic alignment. We look forward to building a strong, long-term partnership with Aurubis and establishing a presence in Europe as we advance toward construction readiness.”
Originally operating as the Troilus Mine until 2010, the site produced two million ounces of gold and nearly 70,000 tonnes of copper.
Acquired in 2017 after thorough geological, economic, and technical evaluations, the project’s indicated mineral resources have expanded by 447% to 11.21 Moz AuEq since acquisition. Inferred resources increased by 157% to 1.80 Moz AuEq.
A May 2024 feasibility study indicates potential for Troilus to become one of Canada’s largest gold producers with an average annual production of 303,000 ounces AuEq over a projected mine life of 22 years.
The property benefits from existing infrastructure valued at about $500m, including access roads, a substation, power lines, a permitted tailings facility, and water treatment plants.
Aurubis chief operating officer Tim Kurth said: “The agreement with Troilus further strengthens our global raw material portfolio with high-quality concentrates and reinforces our competitive position in the international market.
“Leveraging our broad network and expertise in processing diverse raw material qualities, we create long-term planning security and mutual value for both partners.”
