LaFleur Minerals (CSE:LFLR) has selected Trafigura Canada to arrange and provide a prepayment financing facility of up to C$30 million ($30.46 million) and gold doré purchase agreement.
The gold doré purchase agreement will be for the development of the Swanson Gold Deposit and processing operations at the Beacon Gold Mill in Québec, Canada, subject to definitive documentation, due diligence, and closing conditions.
As part of the C$30 million prepayment facility, there are no commodity price hedging requirements and will underpin required funding for LaFleur’s processing facility operations and ramp-up towards a targeted processing capacity of 1,250 tonnes per day at the Beacon Mill and development work at Swanson.
Both agreements represent a pathway to establishing key commercial contracts that will facilitate project development by combining a credit facility and production offtake with a single, globally recognised counterparty on commercial terms that are attractive to the company.
Under the agreements, Trafigura will have the right of first refusal to participate in further funding to expand capacity at Beacon to a proposed 3,000–4,000 tonnes per day.
A state of readiness
Chairman Kal Malhi says the strong interest the company has gained over the past month as well as the preliminary economic assessment (PEA) on Beacon Mill production verify a state of readiness for the mill.
“The project’s value is further augmented by additional regional roll up potential, as its location is within a 20-minute drive from the town of Val-d’Or, a region globally renowned for gold projects that bolsters a skilled mining labour force,” Malhi says.
CEO Paul Ténière says that the PEA is based on an all-in sustaining cost of US$1,569 per ounce gold and calculated on a base case of $2,750 an ounce gold, with compelling economics outlining an after-tax internal rate of return of 65% and C$101 million net present value, which has attracted several serious well-established investment groups.
“We are delighted to be collaborating with Trafigura as our chosen financing provider and offtaker for the Beacon Gold Mill and are excited to execute this first agreement and subsequent agreements as we continue to add circuits and capacity at the Beacon Gold Mill and plan for first gold pour in Q2 2026,” Ténière says.
“The combination of a long-term offtake and non-dilutive financing aligns well with our strategy to restart the Beacon Gold Mill and advance the Swanson Gold Deposit.”
Both companies are proceeding on an exclusive basis during the due diligence period. The company expects to complete due diligence and negotiate definitive agreements in the coming months.
LaFleur Minerals is a gold developer focused on its projects in the Abitibi Gold Belt near Val-d’Or, Québec.
Write to Aaliyah Rogan at Mining.com.au
Images: LaFleur Minerals
