Troilus Receives US$850 Million Credit-Approved Debt Commitment Letter for the Troilus Gold-Copper Project

Troilus Mining Corp. (TLG) announced on September 28, 2026, that it has received credit-approved commitment letters from KfW IPEX-Bank and Societe Generale to underwrite US$850 million of senior secured project finance debt for the Troilus Gold-Copper Project in Québec. This commitment represents a substantial portion of the proposed debt package moving from mandate to credit-approved underwriting commitments, following the mandate previously announced in a May 5, 2026 press release.

The US$850 million commitment is part of a planned total anticipated US$1.1 billion debt package. This total includes a proposed US$250 million contribution from Export Development Canada (EDC), which remains subject to EDC's final approvals. The financing structure consists of senior secured project finance facilities with export credit-backed pricing and competitive interest margins. The terms include a repayment grace period of up to three years during construction, followed by a sculpted repayment profile over a notional 10-year period.

Conditions precedent for the financing remain extensive and consistent with prior guidance. These include the receipt of debt commitments for the total US$1.1 billion, approvals from each applicable export credit agency, the completion of ongoing diligence, the execution of definitive documents and support arrangements, no material adverse change, and all required regulatory approvals. Auramet International Inc. continues to serve as the project finance advisor. Denis Rivard, P.Eng., is the Qualified Person for the project; he is an employee of the company and is not independent under NI 43-101.

This announcement is a financing-progress release and not an earnings release. No production, cost, or reserve figures were newly disclosed in this statement.

Troilus Mining Corp. (TLG) has secured a US$850 million credit-approved commitment letter from two of its three mandate lead arrangers, marking a significant milestone in its financing efforts. The company’s target financing package stands at US$1.1 billion, with a further US$250 million from the Export Development Canada (EDC) still pending.

The progression of the financing story began on November 21, 2024, with Export Credit Agency (ECA) letters of interest totaling approximately US$1.3 billion. On March 13, 2025, the company secured a US$700 million senior debt mandate with Société Générale, KfW, and EDC serving as mandate lead arrangers (MLAs). This mandate was upsized to US$1.0 billion on November 19, 2025, and again in May 2026 to a ceiling of up to US$1.2 billion.

The issuance of a credit-approved commitment letter represents a hard underwriting decision following full lender due diligence, a step-change in financing certainty that confirms lenders accept the technical and economic case underpinning the September 2026 Technical Report. That report outlines an after-tax NPV(5%) of US$3.2 billion and an internal rate of return (IRR) of 22%.

However, several factors temper the immediate impact of this development. The committed package of US$1.1 billion is below the "up to US$1.2 billion" mandate ceiling established in May 2026. Additionally, the EDC’s US$250 million portion remains unapproved, meaning roughly a quarter of the intended package is still uncommitted. The commitment letter is subject to a long list of conditions precedent, including finalizing all ECA approvals, executing definitive documentation, ensuring no material adverse change (MAC), and obtaining regulatory approvals. A commitment letter does not constitute financial close.

Furthermore, the US$1.1 billion in debt does not fully fund the project, as initial capital expenditures are estimated at approximately US$1.428 billion. A funding gap remains that will likely require additional equity and/or a streaming arrangement, a possibility the company flagged as under assessment in November 2025. The recent release does not address this gap.

Troilus Mining Corp. (TSX: TLG; OTCQX: CHXMF; FSE: CM5) is a Canadian development-stage mining company advancing the former producing Troilus gold-copper mine toward production. The flagship Troilus Gold-Copper Project is located in north-central Québec in the Frôtet-Evans Greenstone Belt, situated on a 435 km² land package in a Tier-1 jurisdiction.

An updated NI 43-101 Technical Report dated September 9, 2026, outlines a 26-year mine life featuring a 50,000 tpd open-pit operation, with potential to increase throughput to approximately 52,000 tpd from Year 3. The project demonstrates an after-tax NPV(5%) of US$3.2bn, a 22% IRR, and a 3.6-year payback period based on metal prices of US$3,600/oz Au, US$5.00/lb Cu, and US$50/oz Ag, yielding approximately US$6.9bn in cumulative after-tax cash flow. Initial capital costs are estimated at approximately US$1.428bn, classified as AACE Class 3 with a contingency of +15%/-10%.

Life-of-mine payable production is projected at 5.63 moz Au, 472 Mlb Cu, and 10.88 moz Ag, with a life-of-mine all-in sustaining cost (AISC) of approximately US$1,340/oz, net of copper and silver credits. The strip ratio has improved to 2.4:1, down from 3.1:1 in the 2024 feasibility study. Proven and Probable reserves total 478 Mt at 0.44 g/t Au, representing a tonnage increase of approximately 26% compared to the 2024 FS.

Power requirements are supported by a 70 MW hydroelectric allocation secured in June 2026, with an assumed cost of approximately US$0.04/kWh. Construction is anticipated to begin in 2027, with first ore targeted for September 2029 and commercial production targeted for March 2030.