Ccori Apu’s total gross proceeds to Ascot will be C$50m. Credit: nettetal10 from Pixabay.

Canada-based Ascot Resources has signed non-binding letters of intent (LoI) for a package of C$200m ($147m) to fund the Premier gold project in British Columbia, Canada.

Located on Nisga’a Nation Treaty Lands in the Golden Triangle of northwestern British Columbia, Premier Gold Project comprises 8,133ha land position with three key deposits -Premier, Silver Coin and Big Missouri, and several exploration targets.

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The proposed financing package comprises a $110m gold and silver streaming agreement with Sprott Resource Streaming and Royalty and/or its affiliates, as well as an equity investment by Ccori Apu SAC of C$45m ($33m).

In exchange for an upfront payment, Sprott Streaming will receive 8.75% of the gold and 100% of the silver produced from the Premier project and nearby Red Mountain Project.

The gold and silver streams from the projects will be reduced by 50% to Sprott once the firm receives 150,000oz of gold under the latest agreement.

Ccori Apu’s investment involves participation in equity financing. A part of the shares sold is planned to be structured as Canadian Development Expenditures flow-through shares, which allows for a 30% expense deduction of underground development-related activities in Canada.

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As a result, Ccori Apu’s total gross proceeds to Ascot will be C$50m.

Ascot plans to start production at the Premier gold project in early 2024.

Ascot president and CEO Derek White said: “In combining the new $110m stream from Sprott Streaming with the strategic equity investment from Ccori Apu, Ascot is able to advance towards production with minimal debt.

“We are delighted to see Ccori Apu’s interest in our project and welcome their involvement and experience as successful operators in high-grade, underground gold mining as we advance PGP. The Company considers Ccori Apu’s investment as a strong vote of confidence from an experienced underground gold mining company.”

Opened in 1918, the Premier underground mine was North America’s largest gold mine until its closure in 1952. It produced two million ounces (Moz) of gold and 45Moz of silver.