Cabral Gold Announces Closing of US$45.1 Million Gold Loan and Draw Down to Fully Fund Heap Leach Starter Operation

Core Viewpoint - Cabral Gold Inc. has successfully completed a gold loan agreement, securing US$45.1 million to fund the construction of its Cuiú Cuiú Heap Leach gold starter project, which is expected to commence production in Q4 2026 [1][3][10]. Financing and Agreements - The company has finalized all transaction documents for the gold loan, which includes binding finance agreements and intercreditor agreements, and has received the principal amount equivalent to 345 kilograms of gold valued at US$45,121,732 [2][8]. - The gold loan is secured by corporate guarantees and first-ranking security from Cabral Gold Inc. and its subsidiaries [2]. Project Funding and Costs - The proceeds from the gold loan will fully fund the estimated capital expenditure of US$37.7 million for the Cuiú Cuiú project, as outlined in the pre-feasibility study released on July 29, 2025 [3][9]. - The project has a mine life of 6.2 years, with an all-in-sustaining operating cost of US$1,210 per ounce of gold produced [9]. Financial Returns and Projections - The project is projected to yield an internal rate of return (IRR) of 78% and a net present value (NPV5) of US$74 million, with a payback period of 10 months at a base case gold price of US$2,500 per ounce [10]. - The financial flexibility from the gold loan allows the company to continue its exploration drilling program during the construction phase, aimed at expanding the resource base [6][11]. Shareholder Engagement - Concurrently with the loan, the company issued 10,000,000 non-transferable common share purchase warrants to the lender, with an exercise price of C$0.71 per share, representing a 50% premium on the 5-day volume-weighted average price [4]. Operational Readiness - Following the loan receipt, the company has approximately C$66 million in treasury and has accelerated its early works program to support the first gold pour planned for Q4 2026, employing 141 personnel on-site for construction and support roles [5].