Troilus reaches terms on offtake agreement with Aurubis

[Redator]

Troilus Gold (TSX: TLG) announced on Wednesday it has reached terms with Germany’s Aurubis AG for an offtake agreement on future production of concentrates from its copper-gold project in Quebec.

The final agreement, says Troilus, is expected to be executed in connection with the project’s broader $700 million debt financing package announced in March 2025. The financing is being structured by a syndicate of global financial institutions, including Société Générale, KfW IPEX-Bank and Export Development Canada.

This financing arrangement follows financial backings Troilus received last year from four global export credit agencies to support the project’s construction. Among those was Euler Hermes, which on behalf of the German Federal Ministry for Economic Affairs and Climate Action expressed its interest in providing a $500 million loan, contingent on an offtake agreement with Aurubis.

Hamburg-based Aurubis is Europe’s largest producer of refined copper, with over 20 production and sales sites across the globe.

“Reaching an agreement on indicative offtake terms with a world-class partner like Aurubis marks a key milestone as we advance toward construction of the Troilus mine,” Troilus CEO Justin Reid commented in a press release. “This agreement enhances both the technical and financial readiness of the project and reflects the quality of concentrate we expect to produce.”

“The agreement with Troilus further strengthens our global raw material portfolio with high-quality concentrates and reinforces our competitive position in the international market,” Aurubis COO Tim Kurth stated.

$1.1B project

Situated in the Val-d’Or district of Quebec, Troilus’ flagship property is host to a former mine that produced nearly 70,000 tonnes of copper between 1996 and 2010. The company acquired the project in 2017 with a view of restarting the mine operation.

As outlined in a feasibility study last May, the Troilus project would require an initial capital of $1.1 billion to build. Over an estimated 22-year mine life, it is expected to produce on average 135.4 million lb. in copper equivalent, or 75,000 wet metric tonnes in concentrate, annually.

The mine project has an after-tax net present value (at 5% discount) of $884.5 million and an internal rate of return of 14% under the base case scenario. The payback period is estimated at 5.7 years.