ESGold Corp. (CSE: ESAU) (OTCQB: ESAUF) has reached a significant milestone by entering into a definitive gold and silver dore purchase agreement with Ocean Partners UK Ltd. The agreement, announced by the company, establishes a framework for Ocean Partners to purchase 100% of ESGold's dore production from its flagship Montauban Project. In exchange, ESGold gains access to a non-dilutive working capital facility of up to C$9 million, providing crucial funding without diluting shareholder value.
The agreement is based on prevailing LBMA or COMEX market prices, ensuring fair market value for the dore. Delivery of the dore will be made EXW (Ex Works) at the Montauban Project mine site, with Ocean Partners responsible for collection and related logistics. This arrangement streamlines the sales process and reduces ESGold's operational burden.
Gordon Robb, CEO of ESGold Corp., emphasized the importance of this development, noting that it marks the company's evolution from a development-stage company to a near-term producer. "Ocean Partners is an internationally respected organization with extensive experience across the mining sector," Robb stated. "This agreement not only provides us with a reliable offtake partner but also secures the working capital needed to advance the Montauban Project toward production."
The Montauban Project, located in Quebec, Canada, is a gold and silver property with significant historical production. ESGold has been focused on advancing the project through exploration and development activities. The working capital facility will be used to fund ongoing operations and accelerate the path to production.
Ocean Partners UK Ltd. is a global provider of commodity trading and financing solutions, with a strong track record in the mining industry. The partnership with ESGold underscores confidence in the Montauban Project's potential and ESGold's management team.
Investors can find the latest news and updates relating to ESAUF in the company’s newsroom at https://ibn.fm/ESAUF. Additional details about the agreement are available at https://ibn.fm/deTSj.
