Euro Sun Mining has entered into a non-binding memorandum of understanding with Macquarie Bank and Trafigura for a proposed senior project finance facility of up to US$400 million to support development of the company’s Rovina Valley Gold-Copper Project in Romania.
The company separately entered into a term sheet with Urion Investments Holdings Limited, a Trafigura Group company, for a proposed US$3 million strategic equity investment.
Under the MoU, Macquarie and Trafigura will work together during an 18-month mandate period to conduct due diligence, develop a financing structure and seek the internal approvals required to provide a commitment letter for arranging, syndicating and underwriting the proposed facility.
The agreement is binding with respect to the appointment and process, but does not constitute a financing commitment. Any debt facility remains subject to due diligence, internal approvals and definitive documentation.
The MoU also provides Macquarie with a right of first refusal to participate in up to 15% of certain qualifying alternative financing transactions during the term of the agreement and for 12 months after its termination.
Under the proposed equity financing, Urion would subscribe for approximately 21.5 million Euro Sun units at C$0.19 per unit.
Each unit would consist of one common share and one-half of a common share purchase warrant. Each whole warrant would be exercisable at C$0.40 per share for 48 months following closing.
Euro Sun intends to use the net proceeds from the equity investment for the Rovina Valley Project and general corporate purposes.
Both the MoU and equity term sheet remain non-binding with respect to the proposed financing transactions and are subject to negotiation and execution of definitive agreements.
The arrangements are also in addition to an existing US$200 million commitment from Trafigura, which remains in effect under its existing terms.
Euro Sun owns 100% of the Rovina Valley Project in west-central Romania, which the company describes as hosting Europe’s second-largest copper and gold deposit.
The project has been granted European strategic status and is being positioned as a potential source of critical minerals for Europe’s energy transition.
KEY QUOTE:
“The signing of this MoU with Macquarie and Trafigura, alongside the strategic equity investment by Trafigura, represent a significant milestone for the Rovina Valley Project. Together with our existing arrangements, these agreements establish a substantial portion of the financing framework contemplated to advance the Project toward construction, subject to securing the remaining financing, and support our continued commitment to shareholders,” says Grant Sboros, CEO of Euro Sun.
Grant Sboros, CEO of Euro Sun Mining
