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LONDON - SolGold plc (LSE:SOLG) has received the second $33.3 million tranche from its gold streaming agreement with Franco-Nevada (Barbados) Corporation and OR Royalties International Ltd., the company announced Monday.
The payment represents the second installment of a $100 million initial deposit that forms part of a broader $750 million syndicated Gold Stream Agreement. The funds were released after SolGold completed key technical milestones, including the completion and approval of the Cascabel Project Execution Plan.
Prior to receiving these funds, SolGold reported an unaudited cash balance of approximately $12 million as of June 30, 2025.
The company plans to use the funds to advance multiple work streams including early works mobilization, land access, permitting activities, feasibility study completion, and continued drilling at the Tandayama-Ameríca deposit. G Mining Services, SolGold’s engineering partner, is preparing for field mobilization later this quarter as the company works toward its target of first production in the fourth quarter of 2028.
The gold streaming agreement, announced July 15, 2024, includes a pre-development funding package of $100 million to be paid in three tranches. The first $33.3 million was received upon signing, with a further $650 million contribution to development expenditure to be provided upon completion of the feasibility study, permitting and financing.
Under the agreement terms, SolGold has committed to a life-of-mine stream priced at 20% of the spot gold price for 20% of gold production for the first 10 years and 12% thereafter.
In February 2024, SolGold released a Pre-Feasibility Study for the Cascabel Project showing a net present value of $3.22 billion based on an 8% discount rate, with a capital expenditure of $1.55 billion for an initial 12 million tonnes per annum underground block caving operation.
This article is based on a company press release statement.
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