Mayfair Gold secures up to C$310 million financing from Macquarie for Fenn‑Gib project
Mayfair Gold announced a financing arrangement with Macquarie Bank that includes a C$10 million equity purchase and a non‑binding term sheet for a project‑finance loan of up to C$300 million. The loan would contain an early‑draw tranche of C$25 million and interest based on CORRA plus 4.75% during construction, falling to CORRA plus 4.25% after completion. The package also grants Macquarie an off‑take right to purchase the first 50,000 ounces of gold produced each year, up to 300,000 ounces, at a reference price less US$50 per ounce. The financing is intended to fund most of the C$450 million initial development cost for the Fenn‑Gib gold project in Ontario.
Why it matters
The equity injection and loan provide Mayfair with the capital needed to advance permitting, engineering and early construction work, reducing financing risk ahead of a projected 2028 final investment decision. The non‑binding nature of the term sheet means the deal could still be altered or not close, which investors should monitor.
Key facts
- 1Macquarie will invest C$10 million in Mayfair common shares at C$4.26 per share, a 10% premium to the five‑day VWAP. prnewswire.com
- 2The proposed project‑finance loan is for up to C$300 million and may include up to C$20 million of interest that can be added to the loan balance during construction. prnewswire.com
- 3An early‑draw tranche of C$25 million would be available at closing to fund early works and equipment purchases. prnewswire.com
- 4Interest on the loan will be CORRA plus 4.75% per annum during construction, stepping down to CORRA plus 4.25% after completion. prnewswire.com
- 5Quarterly repayments start six months after commercial production, with full repayment required within 72 months of the initial drawdown. prnewswire.com
- 6Macquarie receives an off‑take right to buy up to 50,000 ounces of gold per year, up to a total of 300,000 ounces, at a reference price less US$50 per ounce. prnewswire.com
Summary written by AlphAI from 5 of 5 sources. Not investment advice. Figures are as stated by the linked sources.