Antilles Gold's Agreement for Convertible Loan Notes

Antilles Gold Limited (ASX: $AAU) has entered into an Agreement with Patras Capital Pte Ltd to provide up to three A$1.0 million Convertible Loan Notes over the next three months. The aim is to raise funds to maintain the momentum of the near-term development of the Nueva Sabana gold-copper mine in Cuba while waiting on the outcome of the Groups' arbitration of approximately A$45 million of claims against the Dominican Republic Government resulting from a project that was completed in 2019.

Executive Commentary on Fundraising and Project Development

The dilution of shareholders with recurring capital raises was extremely disappointing but unavoidable when the Company had no existing operations producing a cashflow. Irrespective of the dilution, and the current low market capitalisation, the value of the Company's projects in Cuba is increasing significantly with continuing expenditure. Antilles Gold is assisting the Cuban joint venture company, Minera La Victoria, in negotiations with potential investors showing interest in buying into the company, which would minimize additional raises by Antilles Gold in the foreseeable future. Drafting of amendments to the Agreement, and the joint venture company's Articles is proceeding.

Summary of Antilles Gold's Announcement

Antilles Gold Limited (ASX: $AAU) has arranged up to $3.0 million of convertible loan notes with Patras Capital Pte Ltd to raise funds for the near-term development of the Nueva Sabana gold-copper mine in Cuba. The Company aims to maintain momentum while waiting on the outcome of arbitration of approximately A$45 million of claims against the Dominican Republic Government. The Chairman, Mr Brian Johnson, expressed disappointment over the dilution of shareholders but emphasized the increasing value of the Company's projects in Cuba. Antilles Gold is actively involved in negotiations with potential investors to support its progressive growth and minimize the need for additional raises. The Company's strategy involves participating in the development of previously explored gold, silver, and copper deposits in mineral-rich Cuba, with a focus on the Nueva Sabana mine and the La Demajagua open pit mine. Antilles Gold is comfortable operating under the applicable law on Foreign Investment in Cuba and has been granted a generous fiscal regime by the Government. The existing joint venture agreement includes provisions to mitigate country credit risk for foreign lenders and suppliers.