London-listed SolGold has secured a conditional US$750 million precious-metals streaming package for the Cascabel copper-gold project in Ecuador, providing development funding while committing part of future gold output under the financing arrangement.
The package with Franco-Nevada and Osisko is structured in two stages. Around US$100 million is allocated to studies, permitting and project preparation, while another US$650 million is conditional on completion of feasibility work, permits and the remaining project financing before construction funding becomes available. SolGold is targeting first production in 2028 under a revised mine plan that would begin with open-pit operations at Tandayama-América before progressing to underground mining at the larger Alpala deposit.
Staged development plan links open-pit and underground mining
The development sequence is designed to bring the initial open-pit operation into production before the more technically demanding underground phase. This would require coordination between the initial mine, shared processing infrastructure and the subsequent Alpala development. The staged configuration also means that construction and processing requirements for the two mining phases must be integrated as the project advances. Cascabel’s development plan therefore combines an initial open-pit operation with a later underground expansion.
Streaming package covers 42% of estimated development cost
The US$750 million streaming arrangement represents approximately 42 per cent of the previously estimated development cost. While the financing reduces the amount of immediate equity and conventional debt required, it differs from standard project borrowing because the financiers receive a contractual share of future gold production under agreed terms.
The arrangement gives SolGold access to capital before construction while reducing its exposure to part of the potential benefit from higher gold prices. The company must still secure the remainder of the project’s construction financing through additional debt, equity or strategic investment. Senior lenders will also assess the position of the stream within the project’s financing structure and the ability of remaining copper and gold revenues to support debt service.
Construction funding remains conditional on permits and financing
The US$650 million construction tranche remains conditional. SolGold must complete feasibility work, obtain the required permits and secure the remaining financing before that portion of the package becomes available. Cascabel’s financing structure therefore provides a significant committed component of development funding, while the project’s full construction capital remains to be assembled. The 2028 first-production target is linked to completion of the feasibility, permitting and financing requirements.
The streaming structure exchanges part of Cascabel’s future gold production for capital available ahead of construction, changing the project’s future revenue allocation while providing funding for studies, permitting and the planned development phases.
