ESGold Corp. (CSE: ESAU) (OTCQB: ESAUF) announced a definitive gold and silver dore purchase agreement with Ocean Partners UK Ltd., a significant milestone that positions the company as a near-term producer. Under the agreement, Ocean Partners will purchase 100% of the dore production from ESGold’s flagship Montauban Project, providing ESGold with a non-dilutive working capital facility of up to C$9 million.
The deal is structured with delivery of the dore made EXW (Ex Works) at the Montauban Project mine site, with Ocean Partners responsible for collection and related logistics. Pricing will be based on prevailing LBMA or COMEX market prices, ensuring transparency and market alignment. According to the press release, this agreement marks an evolution from a development company to a near-term producer, as noted by ESGold’s CEO, Gordon Robb.
Ocean Partners UK Ltd. is an internationally respected organization with extensive experience in the metals trading sector. The partnership not only provides immediate working capital but also secures a guaranteed off-take for ESGold’s production, reducing market risk. The facility is non-dilutive, meaning it does not require issuing additional shares, which is favorable for existing shareholders.
The Montauban Project, located in Quebec, Canada, is a gold and silver project that has been the focus of ESGold’s development efforts. With this agreement, the company can accelerate its path to production without the need for equity financing. The working capital facility will support ongoing operations and development activities.
This announcement is crucial for investors as it demonstrates ESGold’s ability to secure financing without diluting shareholder value. It also validates the quality of the Montauban Project, as Ocean Partners’ commitment to purchase 100% of production indicates confidence in the project’s viability. The agreement with a reputable counterparty like Ocean Partners enhances ESGold’s credibility in the market.
For more information on ESGold Corp., visit their newsroom at https://ibn.fm/ESAUF. Details about the purchase agreement can be found at https://ibn.fm/deTSj.
