Canada's Troilus Gold-Copper Project Secures US$850 Million Debt Commitment

en.Wedoany.com Reported - On September 28, Troilus Mining announced that KfW IPEX-Bank, a subsidiary of Germany's KfW, and Societe Generale have provided credit-approved debt commitments totaling US$850 million for the Troilus gold-copper project in Quebec, Canada. The funds form part of the project's planned US$1.1 billion debt financing package, with Export Development Canada proposing an additional US$250 million in financing, which is still awaiting final approval.

The US$850 million financing adopts a senior secured project financing structure, and the commitments remain subject to conditions including the full US$1.1 billion debt facility being put in place, export credit agency approvals, remaining due diligence, execution of definitive financing documents, and relevant regulatory approvals. The financing structure plans a principal repayment grace period of up to 3 years during project construction, followed by staged repayment over a nominal 10-year term based on the project's expected cash flows. The final interest rate and complete financing terms will be announced upon execution of definitive documents.

The Troilus project is located in north-central Quebec. The latest technical report designs it as an open-pit mine with a mine life of approximately 26 years and a nominal processing capacity of 50,000 tonnes per day. Over the life of mine, payable production is estimated at approximately 5.63 million ounces of gold, 472 million pounds of copper, and 10.88 million ounces of silver; initial capital expenditure is approximately US$1.428 billion. Based on long-term prices of US$3,600 per ounce of gold, US$5 per pound of copper, and US$50 per ounce of silver, the project's after-tax net present value is approximately US$3.2 billion, with an internal rate of return of 22% and a payback period of approximately 3.6 years.

Project financing and engineering preparation are currently advancing in parallel. In May of this year, Troilus increased its debt financing authorization from US$1 billion to a maximum of US$1.2 billion; in August, Metso was confirmed to supply the first batch of major mineral processing equipment, including gyratory crushers, cone crushers, feeders, screening equipment, high-pressure grinding rolls, and ball mills. Finland's export credit agency Finnvera subsequently issued a letter of intent for potential export credit support of up to approximately US$132 million related to the Metso equipment procurement.

Troilus is also advancing detailed engineering, permitting, and procurement work. Quebec has allocated 70 megawatts of hydroelectric capacity to the project, and the company plans to proceed with a final investment decision and financial close after remaining financing and approvals are completed.