Antilles Gold Limited Secures 100% Offtake Deals for Nueva Sabana Mine, Boosting Gold Pricing by 12% to Accelerate Project Financing

Tuesday, May 27, 2025
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8:56 am
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Antilles Gold Limited secures off-take deals for its Cuban Nueva Sabana Mine, featuring improved gold concentrate pricing. This key milestone paves the way for financing mine construction, potentially enhancing project value—an attractive development for investors exploring opportunities in emerging mining ventures.

Antilles Gold Limited has entered into definitive off-take agreements for the sale of both gold concentrates and copper/gold concentrates from its Nueva Sabana Mine in Cuba. The agreements, signed with its 50% owned joint venture partner, Minera La Victoria SA, and a major global commodities trading house, cover 100% of the production for these concentrates. The price for the gold concentrate is set at 12% higher than that originally stipulated in the pre-feasibility study, while the copper/gold concentrate pricing remains unchanged. Payment terms outline a provisional payment of 90% of the concentrate’s value within five business days after shipment, followed by a final payment upon confirmation of final assays, weights, and prices. Prices for the concentrates are indexed to market-based indicators, namely the LBMA published gold and silver prices and Metal Bulletin’s price for Grade ‘A’ copper. The agreements are structured to facilitate a steady and evenly spread delivery schedule, with shipments averaging around 1,000 dmt per bill of lading—roughly equivalent to two weeks of production. The estimated initial mine life is approximately 4.5 years, with the potential for extension. Antilles Gold’s announcement confirms that all material assumptions underlying the production targets and technical parameters detailed in previous communications remain unchanged. The mining project is fully permitted, and the company is progressing towards finalising project financing within the next three months, which is expected to lead to construction commencement and subsequent commissioning within 12 months. From a bullish viewpoint, these off-take agreements are a positive development, securing a guaranteed revenue stream that strengthens the project’s commercial profile. The enhanced pricing for the gold concentrate, backed by established market indices, provides additional revenue upside. This financial commitment, alongside the mine’s full permitting and consistent technical assumptions, positions the project favorably in the eyes of potential lenders and investors. Conversely, the bearish perspective might consider the presence of default events within the off-take agreements that could allow the counterparties to suspend or terminate contracts if performance standards are not met. Additionally, the relatively short initial mine life and dependency on volatile commodity market prices could pose risks. For beginner traders, it is important to weigh these strengths and uncertainties when evaluating the project’s potential impact on Antilles Gold Limited’s financial performance.

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