February 15, 2022
Pilar Gold Inc. (Private, Not Rated, Taylor Combaluzier) announced in a letter to shareholders and interested parties that it has entered into a three-year offtake agreement with Trafigura for all of its Au and Ag production from the PGDM (Pilar de Goiás Desenvolvimento Mineral) mill in Brazil. Under the terms of the agreement, Trafigura will provide Pilar with a short-term revolver facility that can be drawn at anytime. The first Au shipment to Trafigura was made last week. We highlight that PGDM, which consists of four mines in production and development stages (three underground and one open pit), was acquired from Equinox Gold (TSX:EQX, Not Rated) in April 2021. The metallurgical plant at PGDM can process up to 4,000 tpd with a 96% extraction rate, producing 40,000 oz Au/yr. The company underscored that production from its Cascavel and Livramento Au mills is not part of this offtake agreement. These two mills are expected to be a key focus for Pilar in 2022 to ramp up production through investment in fleet and mine development. We note that Pilar is expected to go public in H2/21.
