TORONTO, July 10, 2025 (GLOBE NEWSWIRE) -- Euro Sun Mining Inc. (TSX: ESM) ("Euro Sun" or the "Company") is delighted to announce that, further to the Company's press release dated June 20, 2025 (the "June 20 Release") respecting a financing term sheet, the Company has entered into a pre-development facility agreement dated July 10, 2025 (the "Facility Agreement") with Trafigura Pte Ltd. (the "Lender"), pursuant to which the Lender has made available a facility of up to US$2.5m (the "Facility"). The Company intends to draw down from the Facility for general corporate purposes while it negotiates the definitive agreement for the copper concentrates prepayment facility of up to US$200m (the "US$200m Facility") previously referenced in the June 20 Release.
Mr. Grant Sboros, CEO of Euro Sun, commented: "I am very pleased to announce that we have now signed the definitive facility agreement for a portion of the facility referenced in our previous press release. This is a critical step forward in strengthening our financial foundation and advancing our strategic growth plans. With this financing in place, we are securing the stability and resources needed to negotiate the definitive agreement for the larger US$200m facility to drive forward development of our Rovina Valley copper-gold project."
Other Terms
As of the date of this press release, the Company has delivered drawn down utilization requests for the full US$2.5m under the Facility; drawdowns shall be repayable on or (in certain circumstances) prior to June 30, 2027. Subject to a capitalization option, interest is payable quarterly by the Company on the outstanding amount owing under the Facility, calculated based on a market rate of interest.
Offtake Agreement
The Company has also entered into a binding offtake agreement (the "Offtake Agreement") dated July 10, 2025, with the Lender providing for offtake volumes of up to 100% of commercial production for nine years or until minimum aggregate quantities of specified tonnages have been delivered. Pursuant to the Offtake Agreement, certain of the Lender's rights to offtake volumes and minimum aggregate quantities of specified tonnages shall continue after prepayment or repayment of the Facility.
The proposed transactions described in the Facility Agreement and Offtake Agreement (the "Transactions") are arm's length for purposes of the policies of the Toronto Stock Exchange. Except as described in the June 20 Release respecting the Settlement (as defined in the June 20 Release), no finder's fees are payable in connection with the Transactions.
Address Change
We are also pleased to announce that the Company has relocated its registered and head office to 289 Courtland Avenue, Vaughan, Ontario, Canada L4K 4W9. This new location, which also serves as the office of the Company's chairman, Carlo LiVolsi, better aligns with the Company's current leadership and operational focus.
About Euro Sun Mining Inc.
Euro Sun is a Toronto Stock Exchange-listed mining company focused on the exploration and development of its 100%-owned Rovina Valley Project located in west-central Romania, which hosts the second largest copper & gold deposit in Europe. Already granted European strategic status, the Rovina Valley Project is expected to unlock much needed investment and job creation in Hunedoara County and will deliver critical minerals necessary for Europe's green energy transition.
Further information:
For further information about Euro Sun, or the contents of this press release, please contact Investor Relations at info@eurosunmining.com.
Caution regarding forward-looking information:
This press release contains 'forward-looking information' within the meaning of applicable Canadian securities legislation. Forward-looking information includes, without limitation, statements regarding the US$200m Facility, including the Company's ability to enter into a definitive agreement with respect thereto, the receipt of corporate and regulatory approvals, and other matters related thereto. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including receipt of necessary approvals; general business, economic, competitive, political and social uncertainties, both in Romania and the European Union; future commodity prices and market demand; accidents, labour disputes and shortages; risks inherent in the mining industry; and other risks described in the public disclosure of the Company which is available under the profile of the Company on SEDAR+ at www.sedarplus.ca and on the Company's website at www.eurosunmining.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable laws.
