Troilus Mining Corp. (TSX: TLG; OTCQX: CHXMF) announced today that it has secured an US$850 million credit-approved debt commitment for its gold-copper Troilus mine redevelopment project. The arrangement was spelled out in a letter from KfW IPEX-Bank and Societe Generale.
Reopening the mine 170 km north of Chibougamau, Quebec, carries a total price tag of US$1.43 billion. Part of the cost, US$150 million, will be contributed by Export Development Canada, subject to EDC’s final approval.
“These credit approvals represent one of the most significant financing milestones in Troilus’s development to date.” Said Troilus CEO Justin Reid. “Our focus is now on completing the broader financing package to reach a final investment decision and financial close, while advancing permitting, detailed engineering and procurement to support construction readiness.”
Troilus Mining was formed in 2018, after the Troilus project was acquired privately the year earlier. The company set out a decade-long plan to reopen the mine in 2030. The results of the preliminary economic assessment were published in 2020 and the feasibility study in 2040. Detailed engineering is underway, and last month the first major project equipment package was signed with Metso. Permitting efforts began in 2022, and the receipt of necessary permits is anticipated early next year. Now as financing nears completion, Troilus has signed offtake agreements with Boliden and Aurubis. A construction decision is to be made by the end of the year.
The redeveloped mine is expected to have a 26-year life after two years of construction. With a nameplate mill capacity of 50,000 t/d, Troilus anticipates producing 4.6 million oz. of gold, 472 million lb. of copper, and 10.9 million oz. of silver over that time.
The project carries an after-tax net present value of US$3.2 billion, and after-tax internal rate of return at 22%, and payback of the pre-production US$1.43 billion investment in 3.6 years. The life of mine all-in sustaining cost is expected to be US$1,340/oz. of payable gold, net of copper and silver credits.
More information about the Troilus project is posted in the corporate presentation at www.TroilusMining.com.
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