LaFleur Minerals (TSX:LFLR) has signed a definitive gold and silver purchase agreement with Ocean Partners UK for a US$5 million ($7.16 million) working capital facility to support development of its Swanson Gold Project in Québec, Canada.
Effective 1 October, the deal establishes a commercial framework for Ocean Partners to purchase all gold and silver doré produced from LaFleur’s planned bulk sample at Swanson, which will be processed at the Beacon Gold Mill in Val-d’Or.
LaFleur can request the full US$5 million advance starting 1 January 2027, subject to customary conditions.
The facility carries an interest rate of three-month CME secured overnight financing rate (SOFR) plus 7.50% and is repayable through deductions against payments for metal deliveries. The advance requires no arrangement fees, equity, or warrants, and is unsecured against company assets.
The Beacon Gold Mill remains wholly owned by LaFleur, free of royalties or encumbrances.
Metal pricing is based on prevailing London Bullion Market Association gold and silver prices, minus customary refining charges. Deliveries will be made as doré or refined metals as required by the refinery.
CEO Andrew Elinesky says the definitive agreement with Ocean Partners is an important step for LaFleur Minerals’ development of the Swanson Gold Project and Beacon Gold Mill.
“Our focus is on advancing the Swanson Gold Project in a disciplined manner, leveraging our existing processing infrastructure, and establishing a pathway toward gold production,” Elinesky says.
Ocean Partners CEO Brent Omland adds: “The company’s existing Beacon Gold Mill provides a capital-efficient path to advance the project, and we are delighted to be involved in the prolific Val-d’Or mining camp.”
The transaction supports LaFleur’s mine-to-mill strategy in Québec’s Abitibi Gold Belt. The company is continuing maintenance and repairs on the mill’s tailings storage facility alongside geotechnical, surface water, and hydrogeological baseline studies at the Swanson mining lease.
LaFleur says it will not proceed with the non-binding term sheet previously announced with Trafigura Canada in April.
The Beacon Gold Mill has a capacity of approximately 750 tonnes per day and is in the final stages of recommissioning.
LaFleur Minerals is focused on the development of district-scale gold projects in the Abitibi Gold Belt near Val-d’Or, Québec.
Write to Paula Fabe at Mining.com.au
Main image: LaFleur Minerals
