Antilles Gold Ltd (ASX:AAU, OTCQB:ANTMF) executive chairman Brian Johnson will continue in the role for a further 12 months on the same terms and conditions in order to facilitate a succession plan for the Cuba-focused copper-gold explorer.
Following this period, he will then step down to a non-executive role.
Focus on Cuba
Antilles Gold’s strategy is to participate in the successive development of previously explored gold, silver, copper and zinc deposits in mineral-rich Cuba.
The company is at the forefront of the emerging mining sector in Cuba and expects to be involved in the development of a number of projects through its 49:51 mining joint venture with the Cuban Government mining company, GeoMinera SA.
2023 priorities
Among the priorities for Johnson to focus on during 2023 are:
- Concluding negotiations with investors showing interest in a strategic shareholding in the company, or the provision of funding, to support exploration of major copper targets in Cuba.
- Finalising new joint venture agreements with the Cuban Government’s mining company, GeoMinera, for the exploration and potential development of the highly prospective El Pilar copper-gold porphyry system and the New Horizons VMS polymetallic mineral belt in central Cuba, which are held in the company’s exploration agreement with GeoMinera.
- Finalising negotiations for the inclusion of an additional copper belt in the exploration agreement.
- Finalising arbitration of approximately A$45 million of contractual claims against the Dominican Republic Government from a previous project, and the sale of surplus plant and equipment from the same project.
- Arranging financing for the development of the La Demajagua mine.
- Assisting in the recruitment of a suitably experienced managing director to steer the group towards near-term cash flow from mining operations in Cuba that will support future exploration of major copper targets.
Johnson said his move to a non-executive role at the end of 2023 "would allow an experienced managing director unfettered oversight of the planned development of two relatively small mines within its joint venture with GeoMinera aimed at establishing near-term cash flow which would assist the company’s transition to becoming a serious explorer of major copper prospects in Cuba.
"The new managing director will be supported by COO James Tyers who will continue to be responsible for activities in Cuba, and by the company’s highly experienced exploration director Dr Christian Grainger as the level of exploration of major copper and polymetallic targets increases."
Unsecured loan
Johnson has confirmed that in order to improve the group’s cash position, one of his private entities has provided an A$1 million unsecured shareholder’s loan to the company for up to 15 months, subject to the approval of shareholders of its possible conversion to AAU shares.
The conversion of all or part of the loan has been proposed at $0.05 per share prior to March 31, 2023, $0.07 per share between April 1, 2023, and June 30, 2023, and at a 15% discount to the prior 15-day VWAP between July 1, 2023, and March 31, 2024.
The final terms of the loan and its potential conversion will be put to shareholders for approval around February 28, 2023.
Near-term aims
Antilles Gold said the near-term project of the joint venture company, Minera La Victoria SA, was the proposed development of the La Demajagua gold-silver open pit mine on the Isle of Youth in southwest Cuba.
Based on geological modelling and metallurgical test-work, the JV plans to produce concentrates containing gold, silver and antimony for eight years, which could be followed by underground operations for 10 years.
Additional projects
The company’s current pipeline of additional projects with near-term development potential includes the El Pilar gold-copper oxide deposit overlying a large copper-gold porphyry system and the possible reopening of four previously producing copper-zinc mines within the New Horizons VMS-style polymetallic belt.
These properties in central Cuba will be explored initially by Antilles Gold prior to their transfer to the existing joint venture with GeoMinera for additional exploration and studies, and potential development to produce gold, silver, copper and zinc concentrates.
The JV partners intend to invest part of the expected profits from the La Demajagua mine to fund future mine developments, and an extensive exploration program of major targets, including the El Pilar copper-gold porphyry system, and the New Horizons polymetallic mineral belt.