Ontario Gold Mine Financing
Mayfair Gold secures C$310M in equity and project financing for Ontario mine.
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Key Points
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The proposed C$300 million facility would include up to C$20 million of capitalized interest. Its rate is described as adjusted term CORRA plus 4.75%, stepping down to plus 4.25% after project completion; quarterly repayments would start six months after commercial production, with repayment due no later than 72 months after the facility’s initial drawdown.
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Mayfair’s 2026 prefeasibility study forecasts about 920,000 ounces of gold over a 14.3-year mine life, including average annual production of 71,336 ounces in the first six years. The estimate is based on a one-million-ounce reserve, compared with 4.3 million ounces of indicated resources at Fenn-Gib.
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Macquarie’s offtake right covers the first 50,000 ounces of gold produced annually, up to a total cap of 300,000 ounces.
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Mayfair had C$23 million in cash, in addition to the proposed C$10 million equity investment and C$25 million early drawdown, which the company said could support permitting, Indigenous agreements, detailed engineering and procurement ahead of a potential final investment decision.
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Macquarie’s head of mining finance for the Americas, Mike Burns, called Fenn-Gib a project with the potential to become a significant new Canadian gold producer and said Macquarie was pleased to bring its global mining and project-finance experience to support its development.
Mayfair Gold has landed a major financing lifeline for its Fenn-Gib gold project in northern Ontario. Mining.com reports the company secured a C$310 million commitment from Macquarie Bank, plus a C$10 million equity investment, to help fund the project's estimated C$450 million development costs. The deal positions Mayfair to move toward a construction decision in 2028 and first gold production in 2030.
Macquarie's Dual Investment Approach
The financing breaks into two parts. Macquarie will buy C$10 million in Mayfair shares at C$4.26 each — a 10% premium to the five-day trading average, Stock Titan reports. The bank also commits to a non-binding C$300 million project-finance facility with an interest rate of term CORRA plus 4.75%, dropping to 4.25% after the mine starts producing gold.
The loan includes up to C$20 million in capitalized interest. Mayfair can draw C$25 million early for permitting work and equipment purchases. Repayment kicks in six months after production begins, with a maximum 72-month timeline from the first drawdown.
Gold Production Plan Spans 14 Years
Mayfair's 2026 prefeasibility study estimates Fenn-Gib will produce about 920,000 ounces of gold over 14.3 years of operation. The mine will average 71,336 ounces annually in its first six years, based on a one-million-ounce mineral reserve. The Northern Miner notes the project sits on 4.3 million ounces of indicated resources.
Macquarie Gains Gold Offtake Rights
As part of the deal, Macquarie receives the right to purchase the first 50,000 ounces of gold produced each year. The bank's offtake cap sits at 300,000 ounces total. Macquarie's Mike Burns, head of mining finance for the Americas, called Fenn-Gib a project with potential to become a significant Canadian gold producer.
Still Needs Additional Funding for Full Build
Even with Macquarie's backing, Mayfair faces a funding gap. The company has C$23 million in cash on hand. Combined with the C$10 million equity investment and C$25 million early loan draw, that totals C$58 million — leaving roughly C$392 million needed to hit the full C$450 million development budget. The Northern Miner reports Mayfair will need to secure additional financing before construction can begin.
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