ESGold Corp. (CSE: ESAU) (OTCQB: ESAUF) announced it has entered into a definitive gold and silver dore purchase agreement with Ocean Partners UK Ltd., marking a significant milestone for the company as it transitions from a development-stage entity to a near-term producer. Under the agreement, Ocean Partners will purchase 100% of ESGold's dore production from its flagship Montauban Project, in exchange for a non-dilutive working capital facility of up to C$9 million.
The agreement is based on prevailing LBMA or COMEX market prices, ensuring fair market value for the dore. Delivery will be made EXW at the Montauban Project Mine site, with Ocean Partners responsible for collection and related logistics. This arrangement provides ESGold with essential working capital without diluting existing shareholders, a critical advantage for a development-stage company.
ESGold's CEO, Gordon Robb, emphasized the importance of the deal, stating that it marks the company's evolution from a development company to a near-term producer. He noted that Ocean Partners is an internationally respected organization with extensive experience in the sector, providing confidence in the partnership.
For more information about ESGold Corp., visit the company's newsroom at https://ibn.fm/ESAUF.
The Montauban Project, located in Quebec, Canada, is ESGold's flagship asset and is expected to benefit significantly from the working capital facility. The funds will support ongoing development activities, moving the project closer to production.
This agreement is a strategic move for ESGold, providing financial stability while avoiding shareholder dilution. For the mining industry, it underscores the value of strategic partnerships in funding project development. Investors should note that such non-dilutive financing can enhance project economics and reduce risk.
NOTE TO INVESTORS: The latest news and updates relating to ESAUF are available in the company's newsroom at https://ibn.fm/ESAUF.
