MAYFAIR GOLD ENTERS INTO C$310 MILLION ENGAGEMENT LETTER AND NON-BINDING PROJECT FINANCING AND EQUITY INVESTMENT TERM SHEET WITH MACQUARIE FOR FENN-GIB
Mayfair Gold signed an engagement letter and non-binding term sheet with Macquarie for a proposed C$300 million project finance facility plus a C$10 million strategic equity investment, totaling up to C$310 million for the Fenn-Gib Gold Project. The C$10 million equity investment is priced at C$4.26, a 10% premium to the 5-day VWAP, and the facility includes a C$25 million early drawdown tranche with CORRA+4.75% pricing stepping down to CORRA+4.25% after project completion.
Key figures
- Deal Value Usd
- C$310 million
- Offering Price
- C$4.26
- Offtake
- first 50,000 oz gold per year, max 300,000 oz, at reference price less US$50/oz
- Interest rate
- Adjusted Term CORRA + 4.75%, stepping down to CORRA + 4.25% post-completion
- Equity premium
- 10% premium to 5-day VWAP
- Payback period
- 2.7 years base case
- Probable reserve
- 1 million oz (25.1Mt at 1.29 g/t)
- Equity investment
- C$10 million
- Indicated resource
- 4.3 million oz gold (181.3Mt at 0.74 g/t)
- Capitalized interest
- up to C$20 million
- Early drawdown tranche
- C$25 million
- Cumulative fcf six years
- US$896 million at US$3,100/oz gold
- Project finance facility
- C$300 million
- Initial development capital
- C$450 million
AI analysis
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