Euro Sun Mining Announces Non-Binding MoU for US$400 Million Senior Debt Facility and Term Sheet for US$3 Million Strategic Equity Investment

Euro Sun Mining Inc. announced a non-binding Memorandum of Understanding with Macquarie Bank and Trafigura to arrange a senior project finance facility of up to US$400 million for the Rovina Valley Gold-Copper Project in Romania. The MoU establishes an 18-month mandate period for due diligence, financing structure development, and internal approvals to deliver a commitment letter.

Separately, the company agreed to a term sheet for a US$3 million strategic equity investment from Urion Investments, a Trafigura Group company. The equity transaction involves issuing approximately 21.5 million units at C$0.19 per unit, with a statutory hold period of four months and one day. Each unit consists of one common share and one-half of one common share purchase warrant. The warrants are exercisable to acquire one common share at C$0.40 per share for 48 months from closing. Closing is expected on or about September 4, 2026, subject to TSX approval and customary conditions. Proceeds will fund the Rovina Valley Project and general corporate purposes.

The existing US$200 million commitment from Trafigura, announced in December 2025, remains in full force and effect.

Euro Sun Mining Inc. (ESM) issued an announcement that serves as a sequential, expected follow-up to the December 2025 Trafigura facility agreement. The company clarified that the deal does not represent a binding commitment or an immediate capital injection.

The US$3 million equity raise is incremental and small relative to the US$607.1 million initial CAPEX outlined in the November 2025 Definitive Feasibility Study (DFS). Because the US$400 million memorandum of understanding (MoU) is non-binding, execution risk remains high. The 18-month due diligence period delays any tangible balance sheet improvement.

Following the news, the stock price declined from the offering price of $0.19 to $0.15. This movement indicates that the market views the dilution and non-binding status as net neutral to slightly negative in the short term. The announcement reinforces management's capital raising strategy but does not materially de-risk the project's funding gap or permitting timeline at this stage.

Euro Sun Mining Inc. (TSX: ESM) is a development-stage mining company focused on the Rovina Valley Copper-Gold Project in Romania. The project is located in the European Union and has been awarded strategic status under the EU Critical Raw Materials Act (CRMA).

A Definitive Feasibility Study (DFS) updated in November 2025 outlines a pre-tax NPV of US$1.78 billion and a pre-tax IRR of 39.7%, based on $4.5/lb copper and $3,300/oz gold assumptions. The project features an open-pit mine with a 17.2-year life, targeting first production in 2027/2028. The Environmental Impact Assessment (EIA) technical report was completed in November 2025, paving the way for the final permit to construct submission.

Management is led by CEO Grant Sboros and Chairman Carlo LiVolsi, with a board possessing extensive global mining experience.