Vancouver-based Ascot Resources on Monday announced a potential project financing package of C$200-million to complete the construction of the Premier Gold Project (PGP), which is now set to cost the firm C$300-million in total.

The company earlier this year slowed down construction activities at the mine site, in British Columbia, pushing out the first gold pour to 2024. 

Ascot said the proposed finance package would consist of a $110-million gold and silver streaming agreement with Sprott Resource Streaming and Royalty Corp, as well as a strategic equity investment by Ccori Apu of C$45-million, a portion of which will be structured as Canadian Development Expenditures flow through shares, such that the total gross proceeds to the company is C$50-million.

Ccori Apu’s shareholders are the majority shareholders of Compañía Minera Poderosa, which owns and operates a high-grade gold mine in northern Peru and produces about 300 000 oz/y of gold.

“We are thrilled to have found an attractive financing solution to complete construction at PGP. In combining the new $110-million stream from Sprott streaming with the strategic equity investment from Ccori Apu, Ascot is able to advance towards production with minimal debt.

“We are delighted to see Ccori Apu’s interest in our project and welcome their involvement and experience as successful operators in high-grade, underground gold mining as we advance PGP. The company considers Ccori Apu’s investment as a strong vote of confidence from an experienced underground gold mining company,” said Ascot president and CEO Derek White.

The strategic investment is expected to close in mid-January 2023 and is subject to the satisfaction of certain conditions.

Meanwhile, assuming completion of the new funding package, Ascot said the first gold pour remained scheduled for early 2024.

Construction contractors will be mobilised in January 2023 to progress activities in the mill building for the remainder of the winter season. In April, the underground mining contractor will be re-mobilised to resume underground development work. In May, the earthworks contractor will be mobilised to re-start work on the Cascade Creek Diversion Channel and tailings facility, which is anticipated to be completed by October.

Mining will progress throughout 2023 and delivery of ore will start in the fourth quarter of 2023, enabling the start of mill commissioning and first gold pour.

By the end of 2022, Ascot anticipates having invested a total of about C$153-million in construction of PGP. The company stated that, owing to delays associated with the deceleration of project construction and the inflation experienced in 2022, the expected remaining capital to achieve first gold production is about C$147-million.

The remainder of the funds from the financing package will be used to extinguish the existing senior debt and for working capital and general corporate purposes.