1911 Gold secures US$30 million credit facility, Auramet offtake deal
1911 Gold Corp. [AUMB-TSXV] said it has entered into a loan agreement with Auramet International Inc., which has pledged to provide a US$30 million secured credit facility to the company. It is anticipated that proceeds from the credit facility will be used to advance critical operational milestones for the True North Gold Project at Bissett, Man.
Proceeds will specifically provide the capital required to purchase essential mining equipment, underground development and the installation of the new crushing circuit at the mill.
Under the loan agreement, US$15 million will be made available at closing, which is expected to occur by the end of February, 2026. The balance will be available during the period starting on the date that is 90 days after closing and ending at the date that is 180 days after closing.
The outstanding principal amount under the credit facility will accrue interest at a rate of 12% annually, calculated and payable monthly in arrears on the last business day of each calendar month; provided, however, that no interest shall accrue on the Tranche 1 for six months after closing
The Tranche 1 amount will be amortized and repaid to Auramet in 12 equal monthly instalments of US$1.25 million commencing on the date that is 13 months after closing and ending on the date that is 24 months after closing. The tranche 2 amount shall be repaid to Auramet on the maturity date.
In connection with the credit facility, 1911 has entered into an offtake agreement with Auramet requiring the company to sell to Auramet 100% of gold production from its True North Gold Project and its Rice Lake exploration properties until the date that is the later of (i) the date that is 36 months after the closing date (ii) the date on which full repayment of the credit facility has been made.
On Friday, 1911 shares were unchanged at $1.05 and trade in a 52-week range of $1.54 and 15 cents.
1911’s portfolio includes 63,000 hectares within and adjacent to the Archean Rice Lake greenstone belt in Manitoba. It also owns the True North mine and mill complex at Bissett. Other assets include numerous past-producing gold operations located within trucking distance of the fully built and permitted True North mine and mill complex. The company is positioning itself to restart operations in 2027. The strategy is to build a district scale gold mining operation around a centralized, and readily expanded infrastructure to support a long-term mining operation with little development risk and a growing resource base.