Antilles Gold Plans 40.6 Million Share Placement to Director John Zhang

Director's Stake Increase Signals Confidence

Antilles Gold Limited (ASX: AAU) has announced a proposed share placement to its director, John Zhang, who intends to raise his holding from approximately 19% to a full 20% of the company’s shares. This move, subject to shareholder approval at a general meeting expected around mid-April 2026, underscores Zhang’s commitment to the company’s growth trajectory and strategic projects in Cuba.

The placement will involve issuing up to around 40.6 million new shares to Zhang, depending on market activity and other share issues before the placement. Notably, the shares will be issued at a price no lower than the higher of the five-day volume weighted average price or the last third-party placement price, ensuring fairness to existing shareholders.

Options Sweeten the Deal

In addition to the shares, the placement includes free attaching unlisted options at a ratio of one option for every two shares issued. These options will be convertible into shares on or before December 31, 2027, offering Zhang potential upside aligned with the company’s future performance. The company will also seek separate approval for any option conversions that might push Zhang’s stake beyond the 20% takeover threshold.

Strategic Partnership with Xinhai Mining

John Zhang is closely linked to Xinhai Mining, a major shareholder and strategic partner of Antilles Gold. Xinhai Mining, a well-established mining solutions provider with extensive engineering and project management capabilities, holds a significant role in the development of Antilles Gold’s Cuban projects. The EPC contract for the Nueva Sabana copper-gold mine, currently under construction, has been awarded to Xinhai Mining, which is also providing substantial project financing.

This partnership is central to Antilles Gold’s strategy, with Xinhai Mining committed to a US$29.5 million fixed-price EPC contract for Nueva Sabana, covering the bulk of the mine’s development costs. Additionally, Xinhai Mining is providing a US$17.1 million credit facility to support construction cash flow, deferring payments for up to 18 months after commissioning.

Looking Ahead: Expansion and Exploration

Beyond Nueva Sabana, Antilles Gold and its joint venture partner GeoMinera SA plan to develop the La Demajagua gold-silver-antimony mine on Cuba’s Isle of Youth by 2027-28. The joint venture intends to reinvest free cash flow from Nueva Sabana’s initial years to fund this next phase and further exploration of significant copper targets, including the El Pilar porphyry system and the Sierra Maestra copper belt.

The company’s approach, supported by the Cuban government’s favourable investment framework and risk mitigation measures such as holding funds offshore, positions it well to advance these projects with reduced geopolitical risk.