Case Studies

Madsen Gold Project / Pure Gold

Endeavour advised Pure Gold on the US$95 million financing of the Madsen Gold Mine in Ontario, Canada.

US$95m

Transaction Amount

Background
Challenges
Solutions

Endeavour advised Pure Gold on the US$95 million financing of the Madsen Gold Mine in Ontario, Canada. The site was formerly an underground mining operation between 1938 and 1999.

The financial advisory role included:

Developing the financing plan, contractual structure and technical assistance
Managing the independent technical consultant
Competitive parallel negotiations with third party finance providers – PE groups, royalty and stream-companies and commercial banks
Financial modelling, term sheet and documentation negotiations

Brownfields development
Resource calculation and ore dilution
Ramp-up period
Water management

Rapid and competitive implementation (work started based on PEA – early appointment of IE)
Competitive process enabled US$95 million financing package to overfund initial project capital requirement
US$35 million advanced on closing, including equity lead order
No hedging, cash sweeps or offtake agreement
Closed financing and first drawdown within 6 months of FS release

Key Contact

David Rhodes

Managing Director

George Pyper

Managing Director