ESGold Corp. (CSE: ESAU) (OTCQB: ESAUF) announced a definitive gold and silver dore purchase agreement with Ocean Partners UK Ltd., a globally recognized trading firm. Under the terms, 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. This agreement provides ESGold with essential funding without diluting shareholder equity, a critical advantage for a development-stage company advancing toward production.
The arrangement stipulates delivery of dore on an Ex Works (EXW) basis at the Montauban site, with Ocean Partners assuming responsibility for collection and logistics. Pricing will be based on prevailing LBMA or COMEX market prices, ensuring transparency and alignment with global benchmarks. This structure allows ESGold to focus on operational ramp-up without the burden of off-take marketing or logistical complexities.
CEO Gordon Robb emphasized the significance of the deal, stating it marks ESGold's evolution from a development company to a near-term producer. The Montauban Project, located in Quebec, Canada, is a past-producing mine with significant gold and silver resources. The working capital facility will support ongoing development activities, including mill refurbishment and infrastructure upgrades, aimed at achieving first production.
Ocean Partners UK Ltd. brings extensive experience in metals trading and financing, having executed similar agreements with mining companies globally. Their partnership validates ESGold's project quality and operational plan. The non-dilutive nature of the facility is particularly noteworthy for investors, as it avoids share dilution that often accompanies traditional equity financing.
This milestone comes as ESGold progresses toward production, with the company having completed preliminary economic assessments and environmental studies. The Montauban Project benefits from existing infrastructure, including a mill and tailings facility, reducing capital requirements. The agreement with Ocean Partners provides a clear path to monetizing dore production while securing working capital for continued development.
For more details on this announcement, visit the company's newsroom at https://ibn.fm/ESAUF. Further information about the working capital facility can be found at https://ibn.fm/deTSj.
