Cabral Gold receives $45-million (U.S.) loan

Executive Summary

• Cabral Gold Inc. has secured a $45 million (U.S.) gold loan from Precious Metals Yield Fund to fully finance the capital expenditures for the Cuiu Cuiu heap leach starter project.
• The company’s board has approved the commencement of construction, transitioning from early works to full construction mode starting November 1, with a target for the first gold pour by the end of 2026.
• The financing includes the issuance of 10 million non-transferable warrants to the lender and allows the company to maintain its regional exploration drilling program without significant capital dilution.

Key Details

• Financing Structure:
  • Principal amount: $45 million (U.S.).
  • Lender: Precious Metals Yield Fund (affiliate of Phoenix Gold Fund, Cabral's largest institutional shareholder).
  • Term: 39 months from the first drawdown date, with full repayment no later than December 31, 2028.
  • Drawdown: Expected within weeks, subject to registration of security interests.
  • Form of Advance: Gold or cash at the company's option; if cash, the balance is expressed in fine gold kilograms based on the gold price at drawdown.
• Loan Terms:
  • Annual interest rate: 10%.
  • Interest capitalization: 100% of interest costs capitalized to principal until December 2026.
  • Repayment: Principal payments of 39 kilograms of gold per quarter, commencing March 31, 2027.
  • Prepayment: Provision for penalty-free repayment of outstanding principal and interest.
  • Covenants: No hedging, cash sweeps, cash collateralization, or offtake agreements.
  • Debt Service Coverage: Forecast to account for under 14% of gold produced during the project's life and 32% during the loan's life.
• Warrant Issuance:
  • 10 million non-transferable common share purchase warrants issued to the lender on drawdown.
  • Exercise price: $0.71 per warrant share (50% premium on the 5-day VWAP ending October 15, 2025).
  • Term: 24 months following issuance.
  • Hold Period: Subject to statutory hold period expiring four months and one day following issuance.
• Project Financials (Based on July 29, 2025 Prefeasibility Study):
  • Capital Expenditures (Capex): $37.7 million (U.S.).
  • Mine Life: 6.2 years.
  • Processing Capacity: One million tonnes per annum heap leach plant.
  • All-in-Sustaining Costs (AISC): $1,210 (U.S.) per ounce.
  • Internal Rate of Return (IRR): 78% (post-tax).
  • Net Present Value (NPV5): $74 million (U.S.).
  • Payback Period: 10 months (at base case gold price of $2,500/oz).
• Construction and Operational Timeline:
  • Construction Start: November 1 (transition from early works to formal construction).
  • Key Milestone: Completion of earthworks and civil works on the production plateau by end of 2025.
  • Commissioning: Q3 2026.
  • First Gold Pour/Production: Q4 2026.
• Use of Proceeds:
  • Fully funds the $37.7 million Capex for the Cuiu Cuiu heap leach starter project.
  • Remaining treasury funds (~$70 million on drawdown, including a prior $14.9 million equity raise) will support early works acceleration and ongoing regional exploration drilling.
• Resource Data (Cuiu Cuiu District):
  • Indicated Resources: 12.29 Mt at 1.14 g/t Au (450,200 oz) in fresh basement; 13.56 Mt at 0.50 g/t Au (216,182 oz) in oxide material.
  • Inferred Resources: 13.63 Mt at 1.04 g/t Au (455,100 oz) in fresh basement; 6.4 Mt at 0.34 g/t Au (70,569 oz) in oxide material.

Notable Quotes

• "This gold loan agreement is a monumental step forward for our company and provides a complete funding solution for the construction of our heap leach starter project, without any significant further dilution to our capital structure." — Alan Carter, President and CEO
• "The gold loan agreement also allows us to continue our program of exploration drilling during the construction period and beyond. This program is aimed at expanding the much larger underlying hard rock resource base at Cuiu Cuiu." — Alan Carter, President and CEO