Troilus completes $5.8 million private placement
Troilus Gold Corp. [TLG-TSX, CHXMF-OTCQB] said it has completed a non-brokered private placement of approximately $5.8 million to funds managed by VanEck Associates Corp., a globally recognized investment management firm.
The offering consisted of 16.47 million common shares priced at 35 cents per share, representing a 1.45% premium to the five-day volume-weighted average price of 34.5 cents as of January 20, 2025. Following the closing of the offering, accounts managed by VanEck now hold approximately 4.3% of Troilus’s total issued and outstanding shares. Net proceeds of the offering are earmarked for general corporate and working capital purposes. Troilus shares eased 1.25% or $0.005 to 29.5 cents in early trading Friday. The shares trade in a 52-week range of 85 cents and 25 cents.
Troilus is a Quebec-focused exploration and early-stage development company. It is aiming for a mineral expansion and potential restart of the former gold and copper Troilus mine near Chiibougamau, Que. The company announced the results of a feasibility study in May, 2024.
It said the study incorporates an initial reserve estimate that supports a long life, large scale 50,000 tonnes per day open pit mining operation. The initial development capital estimate of over $1.07 billion, includes mine pre-production costs, net of existing infrastructure.
The Troilus property is located northeast of the Val d’Or district, within the Frotet-Evans Greenstone Belt in Quebec. From 1997 to 2010, Inmet Mining Corp operated the Troilus project as an open-pit mine, producing more than 2.0 million ounces of gold and nearly 70,000 tonnes of copper.
After mining was completed in April 2009, the mill ceased to operate and the camp was subsequently sold and dismantled. Inmet was acquired by First Quantum Minerals Ltd. (FM-TSX) in 2013.
The feasibility study envisages an open pit mine life of 22 years with the potential for underground development. Life of mine average annual payable gold production is forecast to be 244,600 ounces of gold, 17.3 million pounds of copper and 445,700 ounces of silver.
The all-in-sustaining cash operating cost is estimated at US$1,109 per ounce.
Peak production is expected to be achieved in year seven when the production is estimated at 456,100 ounces, 31.8 million pounds of copper and 613,600 ounces of silver.
The feasibility study is supported by an initial mineral reserve estimate of 380 million tonnes of grade 0.59 g/t gold equivalent (AuEq) (0.49 g/t gold, 0.058% copper, and 1.0 g/t silver), containing 7.26 million ounces of AuEq (6.02 million ounces of gold, 484 million pounds of copper and 12.2 million ounces of silver.
“We are pleased to welcome VanEck as a strategic investor in Troilus,’’ said Troilus CEO Justin Reid. “Their investment is a strong endorsement of the Troilus project’s quality and its potential to become a cornerstone Canadian mining operation.’’
Troilus recently said it has launched the submission process for its Environmental and Social Impact Statement, which it described as a significant milestone in the permitting process.