1911 Gold Announces US$30 Million Credit Facility with Auramet International
Institutional debt secures the road to 2027 production but leaves high-cost operation exposed to gold price volatility
On February 20, 2026, 1911 Gold announced a US$30 million (approx. CAD $41 million) secured credit facility with Auramet International. The facility is structured in two US$15 million tranches. Tranche 1 includes the issuance of warrants with a CAD $1.07 exercise price. In conjunction, the company entered a 100% offtake agreement, requiring the sale of all gold produced from the True North Project and Rice Lake properties to Auramet until 36 months after closing or full debt repayment. Funds are earmarked for underground development, mining equipment, and mill upgrades (crushing circuit).
- Financing Certainty: This is a major step toward de-risking the "restart" strategy. The US$30 million covers roughly 70% of the $59.2 million CAD initial capital expenditure outlined in the February 10, 2026, PEA.
- Institutional Validation: Auramet is a specialized precious metals lender with significant history at the True North site. Their willingness to lend against the asset provides third-party technical validation of the new mine plan.
- Cost of Capital: While debt avoids the massive equity dilution seen in 2025 (where share counts jumped significantly), the 100% offtake agreement is a significant encumbrance that limits the company's ability to sell gold to other parties or utilize spot price spikes effectively through varied marketing.
- Project Economics vs. Debt: The PEA assumes a US$3,000/oz gold price to achieve its high IRR (105%). With a Life of Mine (LOM) AISC of US$1,897/oz, the operation remains a high-cost producer. The addition of debt servicing costs further narrows the margin of safety if gold prices retreat from historic highs.
1911 Gold owns the True North Gold Project in Bissett, Manitoba. The asset includes a fully permitted 1,300 tonne-per-day (tpd) mill and significant underground infrastructure currently under rehabilitation. The project is a "restart" of a historical operation that produced 2 million ounces. The new strategy focuses on high-grade shoots (San Antonio West/Southeast) and a "Super-level" haulage system to improve on historical inefficiencies.