Mabilo Project’s Sub-$25M Capex and 40% Stake Highlight RTG’s Growth Path
RTG Mining Inc. is advancing rapidly towards financing the Stage 1 Direct Shipping Operation at its high-grade Mabilo Copper and Gold Project in the Philippines, with a capital budget confirmed under US$25 million. Meanwhile, exploration at the Chanach Project in Kyrgyzstan reveals significant porphyry targets, positioning RTG for a pivotal year ahead.
- Stage 1 DSO financing for Mabilo Project nearing completion with binding term sheet expected
- Feasibility study confirms capital expenditure under US$25 million for Mabilo start-up
- RTG holds 40% interest in Mabilo via Mt. Labo, with US$27M loan to be repaid post start-up
- Chanach Project in Kyrgyz Republic shows strong porphyry copper-gold exploration potential
- Panguna Project in Bougainville progresses through community engagement and government discussions
Mabilo Project Financing on the Brink
RTG Mining Inc. (ASX:RTG) has reported significant progress in securing financing for the Stage 1 Direct Shipping Operation (DSO) at its Mabilo Copper and Gold Project in the Philippines. The company, which holds a 40% stake in Mt. Labo Exploration and Development Corporation, the project owner, has confirmed that a binding term sheet to cover 100% of the planned capital expenditure is imminent. This milestone is critical as it paves the way for RTG to move swiftly towards production.
The feasibility study underpinning the DSO start-up has validated a capital budget of less than US$25 million, a relatively modest figure that underscores the project's near-term viability. The primary ore source for this phase is a supergene chalcocite deposit with an average reserve grade of 20.7% copper, expected to yield approximately 25,200 tonnes of copper alongside 52,900 ounces of gold from associated products.
Strategic Partnerships and Debt Repayment
RTG's partnership with TVI Resource Development (Phils) Inc. continues to strengthen, with both parties collaborating closely on financing and operational plans. Key progress has been made on land acquisition and environmental permitting, essential steps before committing to development. Notably, RTG's US$27 million loan to Mt. Labo is set to be repaid early from the proceeds of the Stage 1 DSO, subject to customary liquidity safeguards, which will improve RTG's balance sheet and cash flow position.
Following debt repayment and the 2% net smelter royalty (NSR), RTG anticipates receiving approximately 50% of the Stage 1 proceeds, which will support internal funding for Stage 2, the construction and operation of a 1.35 million tonnes per annum processing plant. This phased approach balances risk and capital deployment, positioning RTG to capitalize on strong copper and gold prices.
Exploration Upside at Chanach Project
Beyond the Philippines, RTG's 90%-owned Chanach Gold and Copper Project in the Kyrgyz Republic is shaping up as a compelling exploration asset. Recent geophysical surveys, including 2D and 3D induced polarization (IP) programs, have delineated a significant porphyry target characterized by a 1.5-kilometer diameter chargeable anomaly extending 800 meters deep. This anomaly exhibits textbook porphyry signatures, including a resistive center and demagnetized zone, and remains open to the west and at depth.
Historical drilling has already identified high-grade gold and copper mineralization, with inferred resources of 484,000 ounces of gold at 5.11 g/t and 64,000 tonnes of copper at 0.37%. The limited exploration to date, covering only about 5% of the strike length, suggests substantial upside potential. RTG has engaged industry expert Greg Hall to advise on advancing exploration efforts, with drill testing of the newly identified anomalies anticipated in the near future.
Panguna Project: Community Engagement and Regional Development
RTG remains actively involved in the redevelopment discussions for the Panguna Copper-Gold Project in Bougainville, Papua New Guinea. As the nominated development partner with the Special Mining Lease Osikaiyang Landowners Association (SMLOLA) and Central Exploration Pty Ltd, RTG is supporting community programs and engaging with the Autonomous Bougainville Government (ABG). The company is positioning itself to contribute meaningfully to the region's economic future, aligning with Bougainville’s broader independence aspirations.
Financial Position and Outlook
As of 31 December 2024, RTG reported cash and liquid assets of approximately A$1.7 million, including a US$0.3 million receivable. The company is actively negotiating additional funding to support its operational and development objectives, particularly the Mabilo Project's Stage 1 start-up. While current cash reserves suggest limited runway, the anticipated completion of financing arrangements is expected to bolster RTG's financial capacity significantly.
RTG’s management team brings extensive international mining development experience, having successfully delivered seven mines across five countries. With institutional investors such as Franklin Templeton and Equinox Partners backing the company, RTG is well-positioned to execute its growth strategy.
Bottom Line?
Completion of Mabilo financing will be a defining catalyst for RTG’s transition from explorer to producer.
Questions in the middle?
- Will RTG secure final binding financing terms for Mabilo Stage 1 within the coming quarter?
- How will exploration results from Chanach’s porphyry target influence RTG’s project prioritization?
- What are the potential timelines and regulatory hurdles for Panguna’s redevelopment amid Bougainville’s political landscape?
