Antilles Gold has officially commenced construction on its Nueva Sabana copper-gold mine in Cuba, backed by a $35 million funding package and a $29.5 million EPC contract with Shandong Xinhai Mining. Initial gold production is targeted for early 2027, promising strong financial returns.
- Construction started on Nueva Sabana mine access and infrastructure in December 2025
- US$29.5 million EPC contract awarded to Shandong Xinhai Mining Technologies
- Project funding of US$35 million secured through loans and credit facilities
- First gold concentrate production expected January 2027 with sales under off-take agreement
- Exploration plans progressing for La Demajagua and multiple copper-gold concessions
Construction Milestone at Nueva Sabana
Antilles Gold Limited has marked a significant milestone with the commencement of construction activities at its Nueva Sabana copper-gold mine in Cuba. Early December 2025 saw the start of critical infrastructure works including the access road, earthworks for key structures, tailings dam, haul roads, and essential water and power supply installations. These efforts are being carried out by Minera La Victoria SA, the 50% owned joint venture company responsible for the project development.
On 31 December 2025, Antilles Gold issued a formal Notice to Proceed under a US$29.5 million Engineering, Procurement, and Construction (EPC) contract to Shandong Xinhai Mining Technologies & Equipment Inc, a Chinese mining and engineering group. This contract sets the stage for the project's completion by the end of 2026, with commissioning and initial gold concentrate production slated for January 2027.
Robust Funding Framework
The project’s US$35 million funding requirement is being met through a diversified package. This includes a US$17.1 million credit facility from Xinhai Mining, alongside loans from Antilles Gold totaling US$8 million, and gold loans plus concentrate prepayments amounting to US$10 million scheduled between March and July 2026. Legal documentation for these arrangements is underway, with finalisation expected in February 2026.
Until formal agreements are completed, Antilles Gold continues to advance funds under existing arrangements, while Xinhai Mining provides credit as per the EPC contract terms. This financial structure underpins the company’s confidence in meeting development timelines and operational targets.
Promising Financial Outlook
Antilles Gold’s pre-feasibility study (PFS) projects production of approximately 77,000 ounces of gold and 9,150 tonnes of copper concentrates over a 4.6-year mine life. At an average gold price of US$3,250 per ounce and copper price of US$9,000 per tonne, the project is forecasted to generate a cash surplus of around US$164 million. Notably, all loans, including the US$10 million from Antilles Gold, are expected to be repaid within the first 18 months of operation.
Given current commodity prices, around US$4,500 per ounce for gold and US$13,000 per tonne for copper, the financial returns could be substantially higher, enhancing the project’s attractiveness and potential shareholder value.
Exploration and Development Beyond Nueva Sabana
Beyond Nueva Sabana, Minera La Victoria is advancing plans for the La Demajagua gold-silver-antimony mine, targeting development in 2027-28 with a potential nine-year mine life and possible underground operations thereafter. The rising price of antimony, now exceeding US$55,000 per tonne, has added a valuable dimension to this project.
Exploration efforts continue on several promising concessions, including El Pilar, San Nicolas, and La Cristina, all located in Cuba’s prolific copper-gold belts. While no substantive exploration occurred in the December quarter, programs are planned for 2026 and beyond, aiming to unlock further resource potential.
Financial Position and Governance
At quarter-end, Antilles Gold reported cash on hand of A$5.9 million, with detailed cash flow statements reflecting ongoing operational and development expenditures. Payments to directors and related parties were disclosed transparently, consistent with ASX governance standards. The company reaffirmed that all material assumptions underpinning production targets and financial forecasts remain valid, with no material changes since prior announcements.
Bottom Line?
As construction accelerates and financing solidifies, Antilles Gold is poised to transform its Cuban assets into a significant cash-generating operation, with upcoming quarters critical for delivery and exploration progress.
Questions in the middle?
- Will the finalisation of project financing documentation proceed smoothly by February 2026?
- How will rising commodity prices influence the project's long-term expansion plans?
- What exploration results can be expected from El Pilar and La Cristina concessions in the coming years?