Antilles Gold Limited (“Antilles Gold” or the “Company”) (ASX: AAU, OTCQB: ANTMF) is pleased to advise that on 28 June 2024 Shareholders of the Cuban joint venture mining company, Minera La Victoria SA, formally adopted previously agreed modifications to the existing Joint Venture Agreement.
The changes to the Agreement will enable the joint venture to pursue a strategy to progressively evolve as a substantial mining company, with minimal future contributions required from Antilles Gold.
The clearly defined pathway for Minera La Victoria to meet its objectives follows:
- Q4 2024 – Commence construction of the relatively small Nueva Sabana gold- copper mine.
- Q3 2025 – Complete the DFS for the La Demajagua gold-silver antimony open pit mine.
- Q4 2025 – Cash flow from the Nueva Sabana mine.
- Q4 2025 – Sell up to 50% of the La Demajagua project to a mining company with experience in operating a two-stage fluidised-bed roaster similar to the one that will be utilised for oxidising the project’s sulphide ore.
- Q4 2025 – Commence construction of the La Demajagua mine.
- Q2 2027 – Cash flow from the La Demajagua mine.
If the joint venture follows this strategy, Antilles Gold’s future contributions to the joint venture will be limited, and the Company could look forward to a distribution from the sale of an effective 25% interest in the La Demajagua project before the end of 2025, and dividends from the Nueva Sabana mine starting in 2026.
Minera La Victoria could also investigate an opportunity to develop a low cost open pit mine in 2026 based on a high grade outcropping gold deposit held by the Company’s Cuban partner, GeoMinera.
Additionally, the joint venture may consider establishing a joint venture with a major copper miner to accelerate exploration and potential development of its porphyry copper properties.
Antilles Gold has been able to assemble an excellent portfolio of development and exploration properties within the joint venture, and is finding GeoMinera to be a pragmatic and supportive partner.
The value and liquidity of the shareholding in Minera La Victoria should continue to increase as the activities of the joint venture progress, and the Company will seek to monetise its investment in Cuba before the end of next year through the proposed partial sale of the La Demajagua project, or the sale of shares in the joint venture company.
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