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Troilus Gold Corp T.TLG

Alternate Symbol(s):  CHXMF

Troilus Gold Corp. is a Canadian mining company focused on the systematic advancement and de-risking of the former gold and copper Troilus Mine towards production. The Company owns a 100% interest in the Troilus project. The Company holds a land position of approximately 435 square kilometers (km2) in the mining jurisdiction of Quebec, Canada, within the prospective Frotet-Evans Greenstone Belt. The Troilus Mine is located northeast of the Val-d'Or district of Quebec, produced 2 million ounces of gold and approximately 70,000 tons of copper. The seven kilometer main mineral corridor includes zones Z87, J Zone, X22 and Southwest, containing an estimated 11.21 Moz AuEq in the Indicated category and 1.80 Moz AuEq in the Inferred category. The Troilus property has an established infrastructure, including operating substation and power lines, an extensive network of well-maintained roads, operating water treatment facility, and a permitted tailing facility.


TSX:TLG - Post by User

Post by AlwaysLong683on Mar 14, 2024 1:20am
173 Views
Post# 35931972

Additional Comments

Additional CommentsHow is TLG going to raise the $800M - $1B capex (my bet is $900M+) to go it alone without absolutely blowing out its share count and massively diluting existing shareholders? Any current shareholders on this BB want an equity raise of 300M new shares (doubling the existing 300M fully diluted shares outstanding to total 600M) at around $0.55 for a company at this stage of the process...? Even if they did this raise, it would only net the company around $160M. Debt / Copper Offtake / Streaming / Royalty will not get you there, and JR seems to want to avoid new streaming / royalty agreements anyway.

Management is critical in this sector, especially when building that first operation. Mines are very capex intensive / expensive to build, even with existing infrastructure, and costs can easily get out of hand, requiring more financing to make it to construction. Without TLG's existing infrastructure, I suspect this project would be deemed uneconomical and not be built at all. MREs and FSs are not as tough to pull off as completing financing / contracting / permitting in a timely manner and on good terms that stay true to your FS capex estimates.

I'm even more content to stay on the sidelines and watch how the company proceeds during the rest of 2024 given they are already quite a bit behind schedule from what JR was stating back in October.


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