Euro Sun Mining (TSX:ESM) has signed a memorandum of understanding (MoU) with Macquarie Bank and Trafigura for a proposed senior debt facility of up to US$400 million ($554.84 million) to develop its Rovina Valley Gold-Copper Project in Romania.
Macquarie Bank, a subsidiary of Macquarie Group (ASX:MQG), and Trafigura will undertake due diligence, develop a financing structure, and seek internal approvals during an 18-month mandate period.
The appointment and financing process under the MoU are binding, but the proposed facility is not a financing commitment. Funding remains subject to due diligence, internal approvals, and definitive documentation.
The agreement also includes exclusivity provisions and gives Macquarie a right of first refusal to participate in up to 15% of certain alternative financing transactions during the mandate and for 12 months after its termination.
Separately, Euro Sun has agreed to a non-binding term sheet with Trafigura subsidiary Urion Investments Holdings for a proposed US$3 million equity investment.
Urion would subscribe for approximately 21.5 million units at C$0.19 ($0.19) each. Every unit would comprise one Euro Sun share and half a warrant, with each whole warrant exercisable at C$0.40 for 48 months.
The placement remains subject to Toronto Stock Exchange and board approvals, definitive agreements, and other customary conditions. Euro Sun intends to use the proceeds for Rovina Valley and general corporate purposes.
CEO Grant Sboros says the debt process and proposed investment add to the project’s financing framework.
“The signing of this MoU with Macquarie and Trafigura, alongside the strategic equity investment by Trafigura, represent a significant milestone for the Rovina Valley Project,” Sboros says.
Euro Sun notes the agreements supplement its existing US$200 million commitment from Trafigura, which remains in force under its current terms.
Euro Sun Mining is a Canada-based developer focused on the wholly owned Rovina Valley Project in west-central Romania. The project has received European strategic status, while the company describes Rovina Valley as Europe’s second-largest copper–gold deposit.
Write to France Pinzon at Mining.com.au
Images: Euro Sun Mining
