ESGold Corp. (CSE: ESAU) (OTCQB: ESAUF) has reached a significant milestone by entering into a definitive gold and silver dore purchase agreement with Ocean Partners UK Ltd. This agreement positions ESGold for near-term production at its flagship Montauban Project, as Ocean Partners will purchase 100% of the dore production. In exchange, ESGold gains access to a non-dilutive working capital facility of up to C$9 million, a crucial financial boost for advancing the project without diluting existing shareholders.
The agreement, based on prevailing LBMA or COMEX market prices, stipulates that delivery of the dore will be made EXW (Ex Works) at the Montauban Project Mine site, with Ocean Partners responsible for collection and related logistics. This arrangement reduces ESGold's operational burden and ensures a steady off-take for its precious metals production. The non-dilutive nature of the facility is particularly important for a development-stage company, as it provides necessary capital while preserving shareholder value.
ESGold's CEO, Gordon Robb, highlighted the importance of this deal, noting that it marks the company's evolution from a development company to a near-term producer. Ocean Partners is an internationally respected organization with extensive experience in the metals trading sector, providing ESGold with a reliable partner for its commercial operations. This partnership not only secures a buyer for the dore but also demonstrates confidence in ESGold's ability to bring the Montauban Project into production.
The Montauban Project, located in Quebec, Canada, has been the focus of ESGold's exploration and development efforts. With this agreement, the company can now proceed with mine development and production activities, supported by the working capital facility. The funds will be used to advance the project towards commercial production, potentially generating cash flow from gold and silver sales.
This development is significant for ESGold and its shareholders as it de-risks the project's financing and provides a clear path to revenue generation. The agreement with Ocean Partners not only validates the quality of the Montauban deposit but also enhances ESGold's credibility in the market. As the company transitions from exploration to production, this deal lays the foundation for future growth and value creation.
For more information on ESGold Corp., visit the company's newsroom at https://ibn.fm/ESAUF.
