ESGold Corp. (CSE: ESAU) (OTCQB: ESAUF) has reached a significant milestone by entering into a definitive gold and silver dore purchase agreement with Ocean Partners UK Ltd., a move that provides the company with a non-dilutive working capital facility of up to C$9 million. Under the agreement, Ocean Partners will purchase 100% of ESGold's dore production from the flagship Montauban Project, with delivery made EXW at the mine site. Ocean Partners will be responsible for collection and related logistics, while pricing will be based on prevailing LBMA or COMEX market prices.
This agreement marks a pivotal shift for ESGold, transitioning from a development-stage company to a near-term producer. Gordon Robb, CEO of ESGold, emphasized the importance of the partnership, noting that Ocean Partners is an internationally respected organization with extensive experience in the sector. The working capital facility, which is non-dilutive, will provide ESGold with the financial flexibility to advance operations at the Montauban Project without diluting existing shareholders.
The Montauban Project, located in Quebec, Canada, is a key asset for ESGold, and this agreement ensures a steady off-take for its gold and silver production. The deal also underscores confidence in the project's viability and the company's ability to bring it into production. For more details on the agreement, investors can access the full announcement here.
ESGold Corp. is committed to the acquisition, exploration, and development of high-quality mineral properties worldwide. This agreement with Ocean Partners is a testament to the company's progress and its strategic approach to financing and production. The non-dilutive nature of the facility is particularly attractive in the current market environment, as it allows the company to grow without increasing share count.
Investors seeking the latest updates on ESGold can visit the company's newsroom here. This development not only strengthens ESGold's financial position but also positions it for a successful ramp-up to production. The partnership with Ocean Partners, a global leader in commodity trading, provides ESGold with a reliable revenue stream and logistical support, reducing operational risks.
As ESGold moves closer to production, this agreement is a key step in demonstrating the commercial viability of the Montauban Project. The company's ability to secure such a facility without dilution is a positive signal to the market, highlighting the strength of its asset and the confidence of its partners. With the working capital in place, ESGold is well-equipped to execute its development plans and deliver value to shareholders.
