Canadian mineral development company Ascot Resources has received a total of around C$200m ($148m) in project financing for the construction of the Premier gold project (PGP).
PGP is located on Nisga’a Nation Treaty Lands in the prolific Golden Triangle of north-western British Columbia.
According to Ascot’s announcement last month, the financing includes $110m in deposit, under gold and silver streaming agreements with Sprott Streaming.
The company has also reached a strategic equity investment with Ccori Apu, worth C$45m, a portion of which will be structured as Canadian Development Expenditures.
Ascot intends to use the financing to re-mobilise contractors for project construction this year, with initial gold production expected in early 2024.
Ascot president and CEO Derek White said: “We commend our financing partners Sprott Streaming and Ccori Apu for working diligently over the past month to expeditiously close the C$200 million financing package.
“We view the financing package as attractive as it preserves Ascot’s operational flexibility and enables the Company to advance towards production with minimal debt.
“With funding secured, we look forward to refocusing our efforts on project construction this year and becoming Canada’s next gold producer.”
Under the terms of the streaming agreements, Sprott Streaming will provide $110m in an upfront payment, and terminate the existing 10% streaming agreement on RMP.
The stream excludes silver from the Silver Hill Target at the northeastern part of the PGP property, where Ascot has identified a distinct style of high-grade silver mineralisation.
Ascot holds the right to buy back 50% of the stream from Sprott Streaming for $80m in cash, between 1 January 2025 and 31 December 2026.
After delivering 150,000 ounces of gold, the stream deliveries shall be reduced by 50% to 4.375% and 50%, respectively.
Morrison Park Advisers, along with its affiliate Summa Advisors in Peru, served as the exclusive financial advisor to Ascot, for the Strategic Investment by Ccori Apu.
Auramet International served as financial advisor to Ascot in relation to the Stream, while Blake, Cassels & Graydon was as legal advisor.
Sprott Streaming managing partner Michael Harrison said: “With the substantial infrastructure in place and excellent exploration potential, we are financing Ascot to production to contribute to the local communities and Nisga’a Nation and expect a long mine life.
“Sprott Streaming continues to provide funding to advance quality projects and provide project financing to bring mines into production.”
Ccori Apu Attorney Victor Ostolaza said: “Our investment in Ascot expresses our belief in the potential of the Premier Gold Project and in the management team tasked with leading its development.
“We have ample experience in underground gold mining and are confident that the project will be the next success story in Canadian mining. We are thrilled to be part of Ascot and look forward to collaborating in the creation of value.”
