Antilles Gold has ramped up construction at its Nueva Sabana gold-copper mine in Cuba, with a $35 million funding package in place and production slated for early 2027. The company is also progressing pre-development and exploration activities on multiple Cuban concessions.
- Nueva Sabana mine construction underway with EPC contract awarded
- US$35 million funding secured from loans and royalty agreements
- First gold concentrate production expected January 2027
- Pre-development drilling and DFS planned for La Demajagua mine
- Exploration focused on El Pilar and La Cristina concessions
Nueva Sabana Mine Construction Gains Momentum
Antilles Gold (ASX:AAU) has made significant strides in building its Nueva Sabana gold-copper mine in Cuba, with construction activities well underway following the formal green light for a US$29.5 million Engineering, Procurement, and Construction (EPC) contract awarded to Shandong Xinhai Mining Group at the end of 2025. Early works kicked off in December with access road construction and earthworks, while fabrication of the concentrator began in March, highlighted by the casting of the SAG mill.
The bulk of materials and equipment for the mining camp and processing facilities have been ordered, with shipments starting in April and on-site assembly scheduled for May. The company targets completion of construction by year-end 2026, aiming to commission and begin producing gold concentrate by January 2027. Sales are expected to commence shortly after, under an existing off-take agreement with a major international commodities trader.
Funding Package Secures Development Pathway
The US$35 million funding required to complete Nueva Sabana is sourced from multiple avenues, including a US$17.1 million credit facility from Xinhai Mining, an initial US$5 million loan from Antilles Gold Inc, and a US$10 million gold royalty agreement with investors. Documentation for these arrangements has been finalised, with the final tranche of funding still under negotiation but with fallback support from Xinhai Mining.
Recent capital injections, such as the $2 million raised from a Chinese investor through a share placement, boost the joint venture loan and reinforce the financial footing for construction efforts. This financial backing aligns with the company’s earlier projections that all loans would be repaid within 18 months of operation, assuming gold prices near US$3,250 per ounce. Current gold and copper prices, hovering around US$4,500/oz and US$13,000/t respectively, could further enhance project returns, as noted in the company’s November 2025 pre-feasibility study.
Advancing La Demajagua and Exploration Targets
While no substantive work occurred at the La Demajagua gold-silver-antimony mine during the quarter, Minera La Victoria SA (MLV) is gearing up for an infill drilling program in June 2026 to better define antimony resources. The project’s scope has expanded to include antimony cathode production, capitalising on a surge in antimony prices from US$13,000 to approximately US$35,000 per tonne since the initial scoping study.
MLV is negotiating with Xinhai Mining to undertake the definitive feasibility study (DFS) for La Demajagua in 2026-27, with plans for the mine to be construction-ready by the end of 2027. Financing is expected to come from retained earnings at Nueva Sabana and credit facilities from the EPC contractor.
Exploration remains focused on the El Pilar copper porphyry targets and the La Cristina copper-gold-molybdenum concession. While no drilling occurred this quarter, plans are in place to resume drilling at El Pilar in early 2027. These concessions show promising signs of large porphyry systems, supported by extensive geophysical surveys and historic drilling.
Cash Flow and Corporate Governance
Antilles Gold reported operating cash outflows of US$283,000 and investing outflows of US$1.4 million during the quarter, primarily loans advanced to the joint venture. Cash on hand stood at A$3.58 million as of 31 March 2026. Director-related payments totalled US$131,000, covering fees and salaries. These figures reflect the company’s ongoing investment in project development while maintaining a lean corporate structure.
The company confirmed that all material assumptions underpinning its production targets and financial forecasts remain unchanged since the November 2025 announcement, maintaining continuity in its project outlook.
This update follows the recent $2 million capital raise that bolstered funding for Nueva Sabana, underscoring the company’s steady progress toward mine commissioning and production milestones.
Bottom Line?
Antilles Gold is on track to bring Nueva Sabana into production early next year, but upcoming financing negotiations and exploration results will be critical to sustaining momentum beyond initial output.
Questions in the middle?
- Will the final tranche of funding for Nueva Sabana be secured without dilutive measures?
- How will rising antimony prices impact the economics and development timeline of La Demajagua?
- What insights will the 2027 drilling programs at El Pilar and La Cristina provide on resource scale and quality?