Bacchus Capital Engaged as Strategic & Project Funding Adviser

TORONTO, April 18, 2024 (GLOBE NEWSWIRE) -- Xanadu Mines Ltd (ASX: XAM, TSX: XAM) (Xanadu, XAM or the Company) is pleased to announce that it has engaged Bacchus Capital Advisers Limited (Bacchus) as its strategic and project funding adviser in relation to the Kharmagtai Copper-Gold Project in the South Gobi region of Mongolia.

Highlights

• Xanadu is executing a Pre-Feasibility Study (PFS) at its Kharmagtai copper-gold project, a 50-50 joint venture with Zijin Mining Group Co Ltd (Zijin). The PFS will be completed in Q3 CY2024 resulting in a gating decision to Feasibility Study (FS) and Financial Investment Decision (FID).
• Upon completion of the PFS in Q3 CY2024, Xanadu has defined several paths available to carry the project and company forward:
  • Fund its 50% share of FS and Construction costs through project financing which may include debt, equity, royalties and streaming components.
  • Execute a put option with Zijin to sell half of its share for US$25M with a loan carry from Zijin to commercial production at 6-month SOFR + 5%, to be repaid from 90% of Xanadu’s share of project cash flow.
  • Execute a put option with Zijin to sell Xanadu’s entire stake for US$50M.
  • Alternatives to be defined.
• Bacchus is a well-respected adviser to the mining industry in the areas of project financing, transaction structuring and mergers & acquisitions.
• Jefferies remains Xanadu’s M&A Adviser.

Xanadu’s Executive Chairman & Managing Director, Colin Moorhead said

“We are pleased to have Bacchus onboard as our strategic & project funding adviser. Bacchus has significant experience helping companies of similar scale and complexity navigate through opportunities and partnerships like ours.

“We believe that with Bacchus onboard, together with Jefferies our M&A adviser, we have the right team to create the most value for our shareholders from our world class Kharmagtai copper-gold project.”

About Xanadu Mines
Xanadu is an ASX and TSX listed Exploration company operating in Mongolia. We give investors exposure to globally significant, large-scale copper-gold discoveries and low-cost inventory growth. Xanadu maintains a portfolio of exploration projects and remains one of the few junior explorers on the ASX or TSX who jointly control a globally significant copper-gold deposit in our flagship Kharmagtai project. Xanadu is the Operator of a 50-50 JV with Zijin Mining Group in Khuiten Metals Pte Ltd, which controls 76.5% of the Kharmagtai project.