REG - SolGold PLC - $33.3M Received from Franco-Nevada & OR Royalties

SolGoldAnnouncement

21/07/2025 07:00

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RNS Number : 8307R  SolGold PLC  21 July 2025

21 July 2025

 

SolGold plc

("SolGold" or the "Company")

SolGold Confirms Receipt of US$33.3 Million

from Franco-Nevada and OR Royalties

SolGold (LSE: SOLG) is pleased to confirm that late last week, the Company
received the second US$33.3 million of funds under its US$100 million initial
deposit from the streaming agreement ("Agreement") with Franco-Nevada
(Barbados) Corporation and OR Royalties International Ltd. (formerly Osisko
Bermuda Limited).

The funds were released following the delivery of key technical milestones,
including the completion and approval of the Cascabel Project Execution Plan,
and form part of the broader US$750 million syndicated Gold Stream
Agreement.(1) As of 30 June 2025, SolGold's unaudited financial statements
reflected a cash balance of approximately US$12 million, prior to the receipt
of this additional funding.

Multiple high-priority workstreams will be advanced, including early works
mobilization, land access, permitting activities, the feasibility study, and
continued drilling at the Tandayama-Ameríca deposit. G Mining Services,
SolGold's engineering partner, is preparing for field mobilization later this
quarter as the Company continues toward its target of first production in Q4
2028.

Dan Vujcic, Chief Executive Officer of SolGold, commented:

"With this funding milestone complete, we're well-positioned to unlock the
further funding we require to get things moving on the project with speed and
intent. Our optimal path to production has been communicated, and we want to
now move decisively to build one of the most significant new copper projects
not only in the Americas but also around the globe. SolGold is grossly
undervalued by the market, and we are fixated on changing this, continuing to
speak to a raft of institutions to encourage buying in the story."

ENDNOTES:

1.   Refer to News Release: Dated 15 July 2024, SolGold plc
Announces US$750 Million Financing Package for the Cascabel Project: Stream
News Release
(https://polaris.brighterir.com/public/solgold/news/rns/story/rndkknx)

ABOUT SOLGOLD

SolGold is a leading resources company focused on the discovery, definition,
and development of world-class copper and gold deposits, and continues to
strive to deliver objectives efficiently in the interests of its shareholders.

SolGold completed and released a staged development plan, including a
Pre-Feasibility Study, on 16 February 2024. The study, completed at
US$1,750/oz gold, US$3.85/lb copper, and US$22.50/oz silver, delivered an NPV
(based on an 8% discount rate) of US$3.22bn on a capex of US$1.55bn for an
initial 12 Mtpa underground block caving operation. The evaluation also showed
an after-tax IRR of 24% and a first 10-year free cash flow generation of
US$7.1bn. The PFS assessed Mineral Resources 539.7 Mt tonnes, which represents
only 18% of the total resource over an initial 28-year project life.

On 15 July 2024, SolGold announced a gold stream agreement with Franco-Nevada
(Barbados) Corporation and OR Royalties International Ltd. (formerly Osisko
Bermuda Limited) (the "Streamers"), pursuant to which the Streamers would pay
US$100 million as pre-development funding in three tranches, conditional upon
achieving various technical and permitting milestones. The first US$33.3
million was received upon signing, with a further US$33.3 million approved by
the Streamers on 9 July 2025. A further US$650m contribution to development
expenditure will be provided on completion of the feasibility study,
permitting and financing, subject to CPs, acceptable financing packages for
the balance funding required. SolGold has agreed, in consideration for this
funding, a life-of-mine stream priced at 20% of the spot gold price at the
time, for 20% of gold production for the first 10 years and 12% thereafter.
The stream represents approximately 5% of total revenue for the project and
provides some 42% of currently estimated capital development
costs. SolGold retains change of control buyback options on the stream to
the extent of 50% within 3 years and 33 1/3 % for a further two years.

SolGold continues to advance de-risking programs, permitting and financing
discussions, and to reevaluate the Project at recent consensus prices for
copper and gold.

On 28 October 2024, SolGold appointed G Mining Services to be the Project
Manager for the Feasibility Study.

The Company operates with transparency and in accordance with international
best practices. SolGold is committed to delivering value to its shareholders
while simultaneously providing economic and social benefits to impacted
communities, fostering a healthy and safe workplace, and minimizing
environmental impact.

SolGold is listed on the London Stock Exchange (LSE: SOLG).

See www.solgold.com.au (http://www.solgold.com.au) for more information.
Follow us on X @SolGold_plc.

 

CAUTIONARY NOTICE

News releases, presentations and public commentary made by SolGold plc (the
"Company") and its Officers may contain certain statements and expressions of
belief, expectation or opinion which are forward looking statements, and which
relate, inter alia, to interpretations of exploration results to date and the
Company's proposed strategy, plans and objectives or to the expectations or
intentions of the Company's Directors, including the plan for developing the
Project currently being studied as well as the expectations of the Company as
to the forward price of copper. Such forward-looking and interpretative
statements involve known and unknown risks, uncertainties, and other important
factors beyond the control of the Company that could cause the actual
performance or achievements of the Company to be materially different from
such interpretations and forward-looking statements.

Accordingly, the reader should not rely on any interpretations or
forward-looking statements, and save as required by the exchange rules of the
TSX and LSE or by applicable laws, the Company does not accept any obligation
to disseminate any updates or revisions to such interpretations or
forward-looking statements. The Company may reinterpret results to date as the
status of its assets and projects changes with time, expenditure, metals
prices, and other affecting circumstances.

This release may contain "forward-looking information". Forward-looking
information includes, but is not limited to, statements regarding the
Company's plans for developing its properties. Generally, forward looking
information can be identified by the use of forward-looking terminology such
as "plans", "expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not
anticipate", or "believes", or variations of such words and phrases or state
that certain actions, events or results "may", "could", "would", "might" or
"will be taken", "occur" or "be achieved".

Forward looking information is subject to known and unknown risks,
uncertainties and other factors that may cause the actual results, level of
activity, performance or achievements of the Company to be materially
different from those expressed or implied by such forward looking information,
including but not limited to: transaction risks; general business, economic,
competitive, political and social uncertainties; future prices of mineral
prices; accidents, labour disputes and shortages and other risks of the mining
industry. Although the Company has attempted to identify important factors
that could cause actual results to differ materially from those contained in
forward-looking information, there may be other factors that cause results not
to be as anticipated, estimated or intended.  There can be no assurance that
such information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such statements.
Factors that could cause actual results to differ materially from such
forward-looking information include, but are not limited to, risks relating to
the ability of exploration activities (including assay results) to accurately
predict mineralization; errors in management's geological modelling and/or
mine development plan; capital and operating costs varying significantly from
estimates; the preliminary nature of visual assessments; delays in obtaining
or failures to obtain required governmental, environmental or other required
approvals; uncertainties relating to the availability and costs of financing
needed in the future; changes in equity markets; inflation; the global
economic climate; fluctuations in commodity prices; the ability of the Company
to complete further exploration activities, including drilling; delays in the
development of projects; environmental risks; community and non-governmental
actions; other risks involved in the mineral exploration and development
industry; the ability of the Company to retain its key management employees
and skilled and experienced personnel; and those risks set out in the
Company's public documents filed on SEDAR+ at www.sedarplus.ca. Accordingly,
readers should not place undue reliance on forward-looking information. The
Company does not undertake to update any forward-looking information, except
in accordance with applicable securities laws.

The Company and its officers do not endorse, or reject or otherwise comment on
the conclusions, interpretations or views expressed in press articles or
third-party analysis.

 

 

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