DGR Global Limited's stake in SolGold set to revalue with US$750m development financing package

DGR Global Limited (ASX: $DGR) holds a 6.6% stake in SolGold PLC, which has secured a US$750 million syndicated gold stream agreement with Franco Nevada and Osisko Royalties. The funding package endorses the US$3.2 billion NPV and after-tax rate of return of 24% in SolGold's March 2024 PFS, supporting the development of the flagship Cascabel copper-gold project in northern Ecuador.

DGR CEO and SolGold Non-Executive Director, Mr Nick Mather, on the financing package

This is a spectacular milestone for SolGold and vindicates DGR's support for and faith in the project and the company. The stream provides a large portion of the required development capital, vindicating the work on and assessment of value in the project to date by major financing houses and all without unacceptable equity dilution as a consequence of conventional funding strategies. Further, to ensure SolGold's unique status, the company maintains an exploration portfolio of 18 other targets through Ecuador, blueprinted off the discovery of Cascabel.

SolGold's financing package and future outlook

SolGold's US$750 million financing package with Franco-Nevada and Osisko validates the Cascabel Project's position as a world-class copper-gold project and provides substantial funding for its construction. The agreement includes provisions for buyback options, ongoing production payments, and flexibility to reduce gold deliveries. SolGold plans to initiate the next phase of Project advancement immediately, focusing on geotechnical drilling, additional metallurgical testing, reserves definition, and securing necessary land access rights. The company continues to review additional funding options for Project development and remains committed to sustainable development and engagement with local communities.