Troilus Secures US$35 Million Loan Facility to Advance Pre-Development Activities
TROILUS SECURES US$35 MILLION LOAN FACILITY TO ADVANCE PRE-DEVELOPMENT
ACTIVITIES
May 15, 2025, Montreal, Quebec – Troilus Gold Corp. (TSX: TLG; OTCQX: CHXMF; FSE: CM5R)
(“Troilus” or the “Company”) announces that it has secured a loan agreement (the
“Loan Agreement”) with Auramet International, Inc. (the “Lender”) for a principal amount of up to
US$35 million (~CDN$49 million) (the “Loan”).
This non-dilutive facility will support Troilus’ near-term development activities, including final
permitting, early works preparation, and advancement toward full project financing.
Justin Reid, CEO of Troilus, commented “In addition to Troilus’s already strong balance sheet and the
anticipated inflow from more than $16 million of in-the-money warrants, this Loan provides Troilus
with enhanced financial flexibility at a lower cost of capital than other available alternatives,
including equity. It positions us to aggressively advance early pre-development initiatives , complete
permitting, and finalize our overall project financing. Auramet has been an invaluable partner
throughout this process and continues to play a key role as our primary project financing advisor.
Their involvement not only brings deep expertise but also aligns their interests directly with those of
Troilus and our stakeholders as we work toward successful financial completion within our targeted
timeline.”
The Loan has an initial term of one year and is structured to be drawn down in tranches to support
Troilus’ working capital requirements pending the completion of project financing for the
construction of its Troilus Project. An initial tranche of US$15 million was advanced to Troilus upon
execution of the Loan Agreement. The remaining US$20 million will be available for drawdown by
Troilus beginning 90 days from the date of the initial advance and subject to the satisfaction by
Troilus of certain conditions precedent.
The Loan bears 1.0% monthly interest on the outstanding balance, including principal and accrued
interest, and is secured by a negative pledge on the Company’s assets, a security interest and a
hypothec charging personal property of the Company. The Loan repayment may be accelerated in
certain specified circumstances and Troilus may also voluntarily prepay the Loan together with all
accrued and unpaid interest at any time without penalty or bonus. Troilus may extend the maturity
of the Loan for an additional six months upon satisfying certain conditions and the payment of
certain fees, in which case the Loan will bear interest at a rate of 1.25% per month during such
period.
In consideration of the first tranche of the Loan, the Lender received 5,000,000 warrants of Troilus,
each exercisable for one common share of Troilus at an exercise price of $0.60 per common share
established at a 10% premium to the 5-day vwap at time of term sheet signing. On the date of the
first drawdown of the second tranche of the Loan, the Lender will be entitled to receive an additional
5,000,000 common share purchase warrants of Troilus each exercisable at an exercise price
representing a 10% premium to the 5-day VWAP (as calculated in accordance with the TSX Company
Manual) of the Troilus common shares prior to the date of their issuance of such warrants. All such
warrants will be for a term of 24 months. Subject to stock exchange approval, an additional
10,000,000 warrant may be issuable upon Troilus opting to extend the maturity of the Loan.
Auramet is one of the largest physical precious metals merchants in the world with
over US$25 billion in annual revenues and provides a full range of services to all participants in the
precious metals industry . Auramet is a private company established in 2004 by seasoned
professionals who have assembled a global team of industry specialists with over 350 years
combined industry experience. Auramet acts as Troilus’s senior advisor on its project financing
initiatives.
About Troilus Gold Corp.
Troilus Gold Corp. is a Canadian development -stage mining company focused on the systematic
advancement of the former gold and copper Troilus Mine towards production. Troilus is located in the
tier-one mining jurisdiction of Quebec, Canada, where it holds a large land position of 435 km² in the
Frôtet-Evans Greenstone Belt. A Feasibility Study completed in May 2024 supports a large-scale 22-year,
50ktpd open-pit mining operation, positioning it as a cornerstone project in North America.
For more information:
Caroline Arsenault
VP Corporate Communications
+1 (647) 276-0050
Cautionary Note Regarding Forward-Looking Statements and Information
This press release contains “forward- looking statements” within the meaning of applicable Canadian
securities legislation. Forward-looking statements include, but are not limited to, statements regarding,
the intended use of advances from the Loan, the expected benefits to Troilus from the Loan , the
availability of additional draw downs under the Loan, the expected proceeds from the exercise of existing
warrants of the Company, and the plans of Troilus. Generally, forward -looking statements can be
identified by the use of forward- looking terminology such as “plans”, “expects” or “does not expect”, “is
expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “continue”, “anticipates” or “does
not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions,
events or results “may”, “could”, “would”, “will”, “might” or “will be taken”, “occur” or “be
achieved”. Forward-looking statements are made based upon certain assumptions and other important
facts that, if untrue, could cause the actual results, performances or achievements of Troilus to be
materially different from future results, performances or achievements expressed or implied by such
statements. Such statements and information are based on numerous assumptions regarding present
and future business strategies and the environment in which Troilus will operate in the future. Certain
important factors that could cause actual results, performances or achievements to differ materially
from those in the f orward-looking statements include, amongst others, currency fluctuations, the global
economic climate, dilution, share price volatility and competition. Forward- looking statements are
subject to known and unknown risks, uncertainties and other important factors that may cause the
actual results, level of activity, performance or achievements of Troilus to be materially different from
those expressed or implied by such forward- looking statements, including but not limited to: there being
no assurance Troilus will meet all conditions for further draw downs under the Loan; uncertainties with
respect to additional warrants being exercised; there being no assurance that the exploration program or
programs of the Company will result in expanded mineral resources; risks and uncertainties inherent to
mineral resource and reserve estimates; the high degree of uncertainties inherent to feasibility studies
and other mining and economic studies which are based to a significant extent on various assumptions;
variations in gold prices and other metals, exchange rate fluctuations; variations in cost of supplies and
labour; receipt of necessary approvals; availability of financing for project development; uncertainties
and risks with respect to developing mining projects; general business, economic, competitive, political
and social uncertainties; future gold and other metal prices; accidents, labour disputes and shortages;
environmental and other risks of the mining industry, including without limitation, risks and uncertainties
discussed in the Company’s latest Annual Information Form, its technical reports and other continuous
disclosure documents of the Company available under the Company’s profile at www.sedarplus.ca.
Although Troilus has attempted to identify important factors that could cause actual results to differ
materially from those contained in forward- looking statements, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can be no assurance that such statements
will prove to be accurate, as actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place undue reliance on forward- looking
statements. Troilus does not undertake to update any forward- looking statements, except in accordance
with applicable securities laws.