Antilles Gold signs binding deal for Cuban sanction relief
Antilles Gold (ASX:AAU) has signed a binding memorandum of understanding (MoU) with GEM Global Yield to help lift US sanctions on its Cuban joint venture (JV).
The agreement, signed on 25 August, sees Luxembourg‑registered GEM become a 25% shareholder in Antilles Gold’s Cayman Islands subsidiary, Antilles Gold Inc (AGI), which holds 50% of Cuban JV mining company Minera La Victoria (MLV).
GEM will assist in making representations and commitments to the US Department of State (DoS) to lift the sanction recently imposed on MLV, allowing construction of its Nueva Sabana gold‑copper mine to resume.
GEM is 100% owned by US citizens, including New York‑based directors.
Under the MoU, GEM will approach the DoS to seek permission to negotiate commercial arrangements that could result in the sanction being lifted.
The company will also commit to incorporating a new US subsidiary to subscribe for the 25% shareholding in AGI as the first step towards a minimum of 51% of AGI’s shares being held by US entities by 30 June 2028.
GEM has 60 days to complete due diligence. Meanwhile, AGI will reconstitute its board if the sanction is lifted.
AGI will appoint a US citizen as independent chairperson, two US citizens nominated by GEM as non‑executive directors, and one non‑executive and one executive director nominated by Antilles Gold.
The surplus cash generated from the first two years of Nueva Sabana operations will be retained as equity for the La Demajagua mine rather than being distributed as dividends.
The parties will negotiate a shareholders agreement within 90 days. AGI intends to apply US$18 million ($25 million) of capital received from GEM’s subsidiary to a short‑term loan to MLV for financing Nueva Sabana construction (US$12.0 million), the La Demajagua DFS (US$4.0 million), and the balance for working capital.
Chairman Brian Johnson says shareholders will appreciate that the proposed transaction would reduce the company’s shareholding in AGI but will not reduce the value of its shares because of the 33% increase in capital expected to be subscribed by GEM’s subsidiary.
The MoU has a six‑month term from 25 August unless extended by mutual agreement. GEM is a US$3.4 billion alternative investment group with offices in Paris, New York, and Nassau.
Antilles Gold is an Australian mining company focused on developing previously explored mineral deposits in Cuba through a 50:50 joint venture with state-owned GeoMinera SA.
Write to JC Villarba at Mining.com.au
Images: Antilles Gold
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