Troilus CEO nets European funding on Carney trip 

Troilus Gold (TSX: TLG; US-OTC: CHXMF) has lined up hundreds of millions in European financing and offtake deals fresh from a Canadian trade mission promoting what CEO Justin Reid calls the largest undeveloped gold and copper asset in the country’s east.   

The revival of the former Troilus mine in Quebec’s James Bay region could reach a fully permitted construction start by mid-2026, Reid told The Northern Miner in a September interview. Troilus Gold has secured $1.3 billion (C$1.8 billion) in financing commitments from European and Canadian export credit agencies, though it expects to draw about $700 million initially. The balance is to come from royalties and subordinated debt arranged with Quebec partners. 

The company has agreed to send one-third of its proposed annual 244,000 oz. gold and 30 million lb. copper to Aurubis in Germany, Europe’s largest smelter, with another third headed to Boliden’s plant in Finland and the balance to Glencore’s (LSE: GLEN) Horne smelter in Rouyn-Noranda, Que. Prime Minister Mark Carney and Quebec Premier François Legault have pivoted Canada’s trade to Europe as relations with the United States sour.  

“We spent the first day in Germany with Carney in a round table discussion focusing on critical minerals,” Reid said by phone. “It was very refreshing. He was on point. He was unscripted. You could tell he was an ex-investment banker, and he listened to us, right? It was a two-way conversation, where we were asked, ‘What can the federal government do for us?’ which was, from my perspective, exactly what we need to hear.” 

Financing and permitting 

Troilus is also counting on the federal government’s new Office of Major Projects, based in Calgary, which aims to streamline permitting for nationally significant projects. The first stage focuses on infrastructure but a second stage is to cover resource developments.  

“Nothing is guaranteed, but we certainly meet the criteria,” Reid said. “We have Cree partnership in our own side, and we have our funding in place. So, you know, our team has done a very good job de risking and checking the boxes to development.” 

The Troilus project would generate an after-tax net present value (NPV) of $885 million at a 5% discount rate and an internal rate of return (IRR) of 14% using $1,975 per oz. gold and $4.05 per lb. copper, according to a 2024 feasibility study. The after-tax NPV increases to $3.6B and IRR to 34% at $3,500 per oz. gold.  

Mining analyst Pierre Vaillancourt said investors are starting to give Troilus more credit, with shares up 265% this year to $1.13 apiece, valuing the company at $450 million.  

“It’s taken a while, but the market is now recognizing that in this gold environment, Troilus is one of the most leveraged gold developers, and set to become Canada’s next major gold producer,” Vaillancourt said in a Sept. 23 note. “Investors should take comfort in noting that the company has consistently executed and is in good position to capitalize on key financing and permitting milestones ahead.” 

Asia trip 

The company was also on a trade mission in August to Asia, where Senior Vice-President of Projects Daniel Bergeron held talks in Japan and South Korea about potential concentrate offtake and financing. Reid said those discussions are for future flexibility.  

“We have commitments, but they’re not firm yet,” he said. “Asia is providing additional opportunities, and if they can provide cheaper financing, then obviously we have to take a strong look at that.” 

The project hosts 11.2 million indicated tonnes grading 1 gram gold per tonne, 0.09% copper, and 1.6 grams silver, for 370,000 oz. contained gold, 22 million lb. copper and 580,000 oz. silver, according to a resource update in July. It has 177 million inferred tonnes at 0.84 gram gold, 0.08% copper and 1 gram silver for 4.8 million oz. gold, 310 million lb. copper and 5.6 million oz. silver. 

Troilus controls about 1,000 sq. km of ground in the Frotet-Evans greenstone belt and is allocating C$10 million this year to exploration with the aim of developing satellite deposits to feed the central mill. 

Deposit redefined 

The site carries a legacy. The original Troilus mine, operated by Inmet Mining from 1996 until 2010, produced more than 2 million oz. of gold and about 70,000 tonnes of copper before closing as reserves dwindled. Troilus Gold acquired the property in 2017 and has since redefined the deposit into a vastly larger open-pit project. 

During construction, Troilus expects to employ about 1,000 people on site, with 680 in operations. The project’s size places it in the top tier of Canadian gold operations. The mine could generate almost C$7 billion in tax revenue for Quebec and Canada over its 22-year open-pit mine life, the CEO said.  

Reid, a geologist and former investment banker who worked at Cominco and Teck Resources (TSX: TECK.A TECK.B, NYSE: TECK) before entering finance, said the timing is right.  

“I have never, in my experience, seen the green light like this,” he said. “It looks like Canada is saying, ‘now’s the time to get aggressive, eliminate bureaucracy, put money and people to work and generate tax revenue.’”