Cabral Gold Secures US$45 Million Gold Loan to Fully Fund Heap Leach Starter Operation
Newsfile·2025-10-16 11:32

Core Viewpoint - Cabral Gold Inc. has secured a US$45 million gold loan to fully fund the construction of its Cuiú Cuiú Heap Leach gold starter project, with the Board of Directors approving the construction decision, aiming for the first gold pour by the end of 2026 [1][2][3]. Financing Details - The gold loan agreement has a principal amount of US$45 million, with a term of 39 months, and is expected to be drawn down within weeks [1][5]. - The capital expenditure (capex) for the project is estimated at US$37.7 million, as per the Pre-feasibility study released on July 29, 2025 [1][8]. - The loan will be used to fund the initial capital costs, with approximately C$70 million available in treasury upon drawdown [2][8]. Project Metrics - The project has a projected internal rate of return (IRR) of 78% and a net present value (NPV5) of US$74 million, with a payback period of just 10 months at a base case gold price of US$2,500 per ounce [3][9]. - The heap leach plant is designed with a capacity of 1 million tons per annum (Mtpa) and a mine life of 6.2 years, producing gold at an all-in-sustaining operating cost of US$1,210 per ounce [8]. Construction and Exploration Plans - The construction of the project is expected to take 12 months, transitioning from early works to full construction mode starting November 1, 2025 [5][11]. - The exploration drilling program will continue during the construction phase, aimed at expanding the underlying hard rock resource base at Cuiú Cuiú [4][10]. Loan Terms and Conditions - The loan includes an annual interest rate of 10%, with 100% of interest costs capitalized to principal until December 2026 [5][6]. - The principal and interest are forecasted to account for under 14% of the gold produced during the project's life and 32% during the loan's life [6]. Shareholder Information - The lender, Precious Metals Yield Fund, is an affiliate of the Phoenix Gold Fund, which is Cabral's largest institutional shareholder [7].