Antilles Gold Locks In Offtake Deals, Accelerating Nueva Sabana Mine Build

Offtake Agreements Finalized

Antilles Gold Limited has reached a significant milestone with its 50% owned Cuban joint venture, Minera La Victoria SA, by signing two comprehensive offtake agreements with a major global commodities trading house. These agreements cover the entire production of gold concentrates and copper/gold concentrates from the Nueva Sabana mine, located in central Cuba.

The terms are notably favorable, with gold concentrate payables set 12% higher than those outlined in the January 2025 Pre-Feasibility Study. Payments are structured to provide 90% of the provisional value within five business days after shipment, ensuring steady cash flow. The agreements also allow for shipments to be spread evenly throughout the year in manageable parcels, without binding volume commitments, offering operational flexibility.

Strategic Implications for Project Financing

These offtake agreements are more than just sales contracts; they are a critical step toward securing the financing needed to bring the Nueva Sabana mine into production. Chairman Brian Johnson highlighted that the agreements strengthen the company’s position in ongoing financing discussions with potential lenders. The mine is fully permitted, and the company aims to finalize financing within three months, targeting construction commencement shortly thereafter and commissioning within a year.

The counterparty, described as a major global commodities trader with a diverse metals portfolio and multi-billion-dollar revenues, adds credibility to the project’s commercial viability. While the identity remains undisclosed, the scale and reputation implied provide reassurance about the reliability of future concentrate sales.

Broader Context and Future Prospects

Antilles Gold’s joint venture is also exploring other promising projects in Cuba, including the La Demajagua open pit mine and the El Pilar copper-gold porphyry system. The company plans to reinvest cash flow from Nueva Sabana into these exploration efforts, potentially expanding its footprint in the region’s copper and gold sectors.

Operating under Cuba’s Foreign Investment Law with government support, the joint venture benefits from a regulatory environment that mitigates country risk by holding funds in foreign bank accounts. This arrangement enhances financial security for stakeholders and underscores the project’s long-term sustainability.

Overall, the signing of these offtake agreements marks a pivotal moment for Antilles Gold, transitioning the Nueva Sabana mine from planning to imminent development, with promising commercial terms and a clear path to production.