ESGold Corp. (CSE: ESAU) (OTCQB: ESAUF), a development-stage company focused on the acquisition, exploration, and development of high-quality mineral properties, has entered into a definitive gold and silver dore purchase agreement with Ocean Partners UK Ltd. Under the agreement, Ocean Partners will purchase 100% of ESGold's dore production from its flagship Montauban Project. In exchange, ESGold will receive a non-dilutive working capital facility of up to C$9 million, as detailed in the announcement here.
This agreement represents a significant milestone for ESGold, transitioning the company from a development stage to a near-term producer. ESGold's CEO, Gordon Robb, emphasized the importance of this evolution, noting that Ocean Partners is an internationally respected organization with extensive experience in the sector. The delivery of dore will be made Ex Works (EXW) 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.
The non-dilutive working capital facility is a key advantage for ESGold, providing funding without diluting existing shareholders. This financial support will enable the company to advance the Montauban Project towards production. The Montauban Project is a gold and silver property located in Quebec, Canada, which has been the focus of ESGold's exploration and development efforts.
The agreement with Ocean Partners underscores the growing interest in precious metals and the strategic partnerships forming in the mining sector. For ESGold, securing a buyer for its entire dore production reduces market risk and ensures a steady revenue stream once production commences. Ocean Partners, a well-established commodity trading firm, brings logistical expertise and financial stability to the partnership.
Investors can find the latest news and updates relating to ESAUF in the company’s newsroom here. This development positions ESGold favorably as it progresses towards becoming a producer in the precious metals market.
