Antilles Gold Secures $1M to Advance Cuban Copper-Gold Projects

Capital Raise to Support Cuban Mining Ventures

Antilles Gold Limited (ASX: AAU) has announced a $1 million capital raise through the issuance of 250 million shares priced at $0.004 each, accompanied by 125 million free options. This move, foreshadowed in the company’s December 2024 Quarterly Report, is designed to bolster working capital primarily for its mining joint venture operations in Cuba.

To date, $150,000 of the funds have been secured from BVI-based Asean Group Investments Ltd, with corresponding shares and options already issued to their nominee. The remaining $850,000 is expected to be subscribed by an existing shareholder in the coming weeks, utilizing Antilles Gold’s existing placement capacity.

Strategic Focus on Nueva Sabana Mine Development

The capital injection is earmarked to cover reduced overheads and provide advances to the joint venture in Cuba over the next three to four months. The primary focus remains on arranging financing for the construction phase of the development-ready Nueva Sabana copper-gold mine, a key asset in Antilles Gold’s portfolio.

Situated in central Cuba, Nueva Sabana represents the first stage of development under the Minera La Victoria SA joint venture, a 50:50 partnership between Antilles Gold and the Cuban Government’s GeoMinera SA. This project is critical as it sets the foundation for future exploration and production activities, including potential expansion into the El Pilar copper-gold porphyry system and other promising targets in the Sierra Maestra copper belt.

Investor Confidence and Financing Options

The Asean Group has indicated a medium to long-term investment horizon and expressed willingness to collaborate with Antilles Gold on sourcing alternative financing mechanisms. These include debt, royalty agreements, hybrid instruments, and direct project equity, all aimed at minimizing dilution risk for existing shareholders.

This strategic partnership could prove pivotal in navigating the capital-intensive development phase while preserving shareholder value. Antilles Gold’s management has emphasized comfort operating within Cuba’s regulatory framework, highlighting the supportive fiscal regime and the joint venture’s structure that mitigates country credit risk by holding funds in foreign bank accounts.

Broader Project Pipeline and Outlook

Beyond Nueva Sabana, Antilles Gold’s joint venture plans include developing the La Demajagua open pit mine on the Isle of Youth, targeting gold-arsenopyrite and gold-silver-antimony concentrates. The company also intends to reinvest free cash flow from Nueva Sabana into exploration of major copper targets, underscoring a long-term growth strategy in Cuba’s mineral-rich landscape.

While the capital raise is modest, it is a crucial step in maintaining momentum on these projects amid a complex geopolitical and operational environment. The company’s transparent communication and strategic investor engagement suggest a measured approach to balancing growth ambitions with financial prudence.