Mayfair Gold (TSX-V:MFG) has secured a C$310 million ($314.6 million) financing commitment from Macquarie Bank (ASX:MQG) to help advance its Fenn-Gib Gold Project in Ontario, Canada.
The financing package includes a C$10 million equity investment, with the Australian bank purchasing Mayfair shares at C$4.26 each. This represents a 10% premium to the stock’s five-day volume-weighted average price.
A large part of the funding will come through a C$300 million loan facility, including a C$25 million early drawdown tranche available on closing, to support development of Fenn-Gib.
“Entering into this engagement letter and financing term sheet represents an important milestone for Mayfair as we advance Fenn-Gib toward development,” CFO Kevin Annett says.
Funding mine development
Mayfair says the loan facility, bearing interest of 4.75% per annum, would fund much of the C$450 million initial capital cost outlined in the project’s 2026 Prefeasibility Study (PFS).
The PFS estimates total production of around 920,000 ounces of gold over a 14.3-year mine life. This includes an average annual output of 71,336 ounces during the first six years.
That production profile is based on an estimated reserve of 1 million ounces of gold, representing about a quarter of the 4.3 million ounces of indicated mineral resource hosted at Fenn-Gib.
Macquarie Head of Mining Finance – Americas Mike Burns says Fenn-Gib could become a major new Canadian gold producer.
“Fenn-Gib stands out as a Canadian gold project with the potential to become a significant new producer,” Burns says.
“Mayfair has taken a disciplined approach to advancing and derisking the project, and we are pleased to bring Macquarie’s global mining and project finance experience to support the next stage of its development.”
Construction targeted for 2028
The financing package also grants Macquarie an offtake right covering the first 50,000 ounces of gold produced each year, up to a maximum of 300,000 ounces.
Mayfair is currently advancing permitting, detailed engineering, and stakeholder engagement at Fenn-Gib.
The company is targeting the start of construction in 2028, followed by first production in 2030.
Mayfair Gold is a Canadian development-stage gold company focused on advancing the 100%-owned Fenn-Gib Project in the Timmins region of Northern Ontario.
Write to Jackson Chen at Mining.com.au
Main Image: Mayfair Gold
