ESGold Corp. (CSE: ESAU) (OTCQB: ESAUF) has reached a significant milestone by signing a definitive gold and silver dore purchase agreement with Ocean Partners UK Ltd. Under the terms of the agreement, Ocean Partners will purchase 100% of the dore production from ESGold's flagship Montauban Project. In exchange, ESGold will receive a non-dilutive working capital facility of up to C$9 million, a move that strengthens the company's financial position as it advances toward production.
The agreement stipulates that delivery of the dore will be made Ex Works (EXW) at the Montauban Project mine site, with Ocean Partners responsible for collection and related logistics. Pricing will be based on prevailing LBMA or COMEX market prices, ensuring transparency and alignment with global benchmarks. This arrangement provides ESGold with a predictable revenue stream and eliminates the need for the company to manage complex sales and logistics processes.
ESGold's CEO, Gordon Robb, highlighted the importance of this agreement, noting that it marks the company's evolution from a development-stage entity to a near-term producer. "Ocean Partners is an internationally respected organization with extensive experience across the mining and metals sector," Robb said. "This agreement not only secures a guaranteed off-take for our production but also provides us with the working capital necessary to accelerate development at Montauban without diluting existing shareholders."
The Montauban Project, located in Quebec, Canada, is a past-producing gold and silver mine that ESGold has been advancing through exploration and development. The non-dilutive funding from Ocean Partners will be used to support ongoing operations, including processing and production ramp-up. This financial structure is particularly advantageous for junior mining companies, as it avoids the dilution often associated with equity financing.
For Ocean Partners, the agreement represents a strategic addition to their portfolio of off-take agreements. The company, based in the UK, specializes in providing tailored financing and marketing solutions to mining companies worldwide. By securing a long-term supply of dore from ESGold, Ocean Partners strengthens its position in the precious metals market.
The agreement is a clear indicator of the growing confidence in ESGold's ability to deliver production from the Montauban Project. With the working capital facility in place, the company is well-positioned to meet its near-term production targets and generate cash flow. Investors can find more information about ESGold and its projects on the company's website at https://ibn.fm/ESAUF.
This partnership underscores the trend of mining companies seeking alternative financing structures that align with production milestones. As ESGold progresses toward becoming a producer, the agreement with Ocean Partners provides a solid foundation for sustainable growth.
