Antilles Gold signs LoI with Xinhai for Cuban mine project
Antilles Gold has signed a non-binding letter of intent (LoI) with Chinese mining and engineering giant Shandong Xinhai Mining Technology Equipment for a potential $26m engineering, procurement and construction (EPC) contract at the Nueva Sabana copper-gold mine in Cuba.
The LoI, which also involves Minera La Victoria (MLV), a 50% owned Cuban mining company, outlines that Xinhai intends to provide $16m in project financing.
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The agreement includes a commitment by all parties to negotiate a binding memorandum of understanding (MoU) by 15 August 2025.
Antilles Gold has agreed, subject to the MoU, to issue 590 million shares to Xinhai at $0.007 per share to raise $4.13m.
Upon completion of the share placement, Xinhai will have the opportunity to nominate a director to Antilles Gold’s board.
The scope of the EPC contract includes the construction of a 500,000 tonnes per annum (tpa) concentrator, buildings, electrical infrastructure and the supply of equipment and consumables.
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By GlobalDataMLV’s responsibilities include constructing infrastructure such as access and haul roads, and managing site safety, security and project administration. They have also agreed to allow Xinhai to bring a team from China for the project’s execution.
Both parties will work towards negotiating an operating agreement for the concentrator for a minimum of two years, with Xinhai staff as part of the management team during the operational phase.
MLV has also granted Xinhai first right of refusal for the EPC contract, valued at $70m, of the proposed La Demajagua mine.
Xinhai will have the opportunity to participate directly in the La Demajagua project and may prepare the definitive feasibility study (DFS) for the production of gold-arsenopyrite concentrate and antimony cathodes.
Antilles Gold has the option to purchase any antimony concentrate or cathode produced by the La Demajagua project at the prevailing Chinese price.
While the MoU is being prepared, Xinhai will conduct due diligence on the Nueva Sabana project, including site visits and meetings with MLV, local authorities and suppliers during July 2025.
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