ESGold Corp. (CSE: ESAU) (OTCQB: ESAUF) announced a definitive gold and silver dore purchase agreement with Ocean Partners UK Ltd., marking a significant step in the company's transition from a development-stage miner to a near-term producer. Under the agreement, Ocean Partners will purchase 100% of ESGold's dore production from its flagship Montauban Project in exchange for a non-dilutive working capital facility of up to C$9 million. The facility provides ESGold with essential funding without diluting existing shareholders, a critical advantage for junior mining companies.
The agreement 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. Pricing will be based on prevailing LBMA or COMEX market prices, ensuring fair market value for the precious metals. This arrangement allows ESGold to focus on production while leveraging Ocean Partners' extensive experience in the metals trading sector.
ESGold's CEO, Gordon Robb, highlighted the importance of this milestone, stating that it marks the company's evolution from a development company to a near-term producer. The Montauban Project, located in Quebec, Canada, is a past-producing gold and silver mine that ESGold is working to restart. The working capital facility will support ongoing development activities and operational expenses as the project advances toward commercial production.
The agreement with Ocean Partners, an internationally respected organization with extensive experience in the mining and metals industry, provides ESGold with a reliable off-take partner. This partnership not only secures a market for its production but also strengthens the company's financial position. The non-dilutive nature of the facility is particularly noteworthy, as it allows ESGold to fund its operations without issuing additional shares, thereby preserving shareholder value.
For more information on ESGold Corp., visit the company's newsroom at https://ibn.fm/ESAUF. The full press release detailing the agreement can be accessed at https://ibn.fm/deTSj.
