Antilles Gold (ASX:AAU) has pursued a structural overhaul of its Cuban joint venture after the US sanctioned Minera La Victoria on 4 June 2026 for operating in Cuba’s metals and mining sector.
The company has submitted a proposal to the US Department of State (DoS) suggesting changes to the joint venture’s operation and ownership.
This proposal could lead to the lifting of the sanction or an Office of Foreign Assets Control (OFAC) licence, allowing MLV to transact with US entities or persons.
A key element involves a minimum 51% stake in Cayman Islands-registered subsidiary Antilles Gold Inc (AGI) being taken up by acceptable US investors through share subscriptions. AGI currently holds 50% of MLV.
Advancing the proposal with the DoS will require a potential cornerstone US investor to approach the department directly and obtain approval for stakeholders to undertake negotiations on commercial arrangements and commitments.
The Antilles chairman is in preliminary discussions with a US investment group with Cuban connections and understands the potential of both AGI and Cuba’s mining sector.
Talks cover the proposal’s structure and potential pricing for an AGI share issue.
Any divestment would require Antilles Gold shareholder approval. Cuban authorities would also need to approve a change of control of AGI, should it enable MLV to resume operations.
The sanctions prevent US persons and entities from conducting business with MLV, effectively blocking the joint venture’s access to US markets and financial systems. The company’s Cuban operations remain suspended pending resolution.
There is no certainty as to whether or when a response to the proposal will be received, or what the outcome might be.
Antilles Gold is an Australian gold-copper developer advancing the Nueva Sabana mine in Cuba through a 50% joint venture with Cuban state-owned enterprise Geominera.
Write to JC Villarba at Mining.com.au
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