Antilles Gold (ASX:AAU) announces that three primary transaction documents for the development of the Nueva Sabana copper-gold mine in Cuba have been signed off.
The documents include a binding Memorandum of Understanding (MoU) for the commercial arrangements between all involved parties including Antilles, a 50% owned JV, Minera La Victoria (MLV), and Xinhai Mining.
The MoU provides MLV with the opportunity to develop the Nueva Sabana mine and it grants Xinhai the first right of negotiation for the engineering, procurement, and construction (EPC) Contract as well as to provide partial funding for MLV’s other mine, La Demajagua. It also provides Antilles with the option to purchase antimony concentrate or cathodes produced at La Demajagua at the current Chinese price.
Other documentation signed off includes the Construction Administration Agreement, which allows Antilles to engage Xinhai for the EPC contract, and the EPC contract itself for Nueva Sabana with Xinhai Mining.
Antilles is currently in the final stages of revising the original joint venture agreement for MLV, with the new agreement articulating clear administrative procedures, confirming the contribution of US$15 million ($22.5 million) from Antilles to the founding capital total, providing MLV with the opportunity to develop multiple projects, and to work with additional third parties on these projects.
Antilles Gold is developing two previously explored deposits in Cuba, focusing on gold, silver, antimony, and copper concentrates.
Write to Amy Rotman at Mining.com.au
Images: Antilles Gold
