- Euro Sun Mining (TSX:ESM) signed a copper concentrates prepayment facility for up to US$200 million with Trafigura Pte
- The funds will expedite development of Euro Sun’s 100-per-cent-owned Rovina Valley project in Romania, housing one of the world’s largest undeveloped copper-gold deposits and the second-largest in all of Europe
- Euro Sun Mining stock has added 116.67 per cent year-over-year but remains down by 56.67 per cent since 2020
Euro Sun Mining (TSX:ESM) signed a copper concentrates prepayment facility for up to US$200 million with Trafigura Pte.
This facility would allow the company to complete all permitting plus strategic investments at its Rovina Valley copper-gold project in Romania over the next 18 months. Rovina Valley is one of the world’s largest undeveloped copper-gold deposits, and the second-largest in all of Europe, housing an estimated 7 million ounces of gold and 233,000 tons of copper.
According to Friday’s news release, Trafigura will assist with the syndication of a consortium to provide Euro Sun with up to US$200 million in additional debt upon Rovina Valley reaching the construction phase.
A separate binding offtake agreement with Trafigura provides up to 100 per cent of commercial production for 7-9 years, subject to minimum agreed upon tonnages.
The parties will now work towards a definitive agreement, subject to the satisfaction of Trafigura’s ongoing due diligence. An initial US$2.5 million tranche is expected to become available in mid-to-late June 2025.
Euro Sun Mining stock has added more than 44 per cent since Rovina Valley was recognized as a strategic asset by the European Union.
Leadership insights
“We are very pleased to have signed this term sheet that we believe could significantly strengthen our financial position,” Grant Sboros, Euro Sun Mining’s chief executive officer, said in a statement. “We are working to obtain financial security for all our stakeholders, and a clear financial roadmap to support our strategic growth and advance the long-term vision for our Rovina Valley project.”
“As per our previous press release, the company is advancing with its environmental impact assessment submission and that will be followed with close engagement with Romanian officials to get the legislative outcome the project requires,” Sboros continued. “Together with our strategic status granted and our financial position closer to being secured, we are on the cusp of being fully equipped to deliver this project for the people of Romania and Europe’s benefit.”
“We are pleased to support Euro Sun in advancing the Rovina Valley project, home to the second-largest copper and gold deposits in Europe,” added Ross Ridgway, head of copper at Trafigura. “As global demand for copper continues to grow—driven by electrification and industrialization—the need for secure, sustainable new sources of supply has rarely been more important.”
About Euro Sun Mining
Euro Sun is a mining company exploring and developing its 100-per-cent-owned Rovina Valley project in west-central Romania.
Euro Sun Mining stock (TSX:ESM) is up by 4 per cent on the news trading at C$0.13 as of 12:55 pm ET. The stock has added 116.67 per cent year-over-year but remains down by 56.67 per cent since 2020.
Join the discussion: Find out what everybody’s saying about this copper and gold mining stock on the Euro Sun Mining Inc. Bullboard and check out the rest of Stockhouse’s stock forums and message boards.
The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.
