US Gold Targets Debt-Funded $400M CK Gold Build as Financing Talks Advance

Key Points

• US Gold is advancing financing talks for the fully permitted CK Gold Project in Wyoming, targeting a predominantly debt-funded construction package of less than $400 million while preserving its roughly $25 million cash balance for corporate needs.
• CK Gold is expected to take about 18 months to build after financing is finalized and currently carries a reported 1.6 million gold-equivalent-ounce reserve with an 11-year mine plan. Management is targeting annual production of approximately 100,000 ounces and is evaluating expansion opportunities, tailings recovery, and aggregate sales.
• The company is keeping its Nevada Keystone exploration project separate from CK Gold’s development funding, potentially through a standalone structure, while continuing discussions with mid-tier mining companies about strategic alternatives.

US Gold NASDAQ: USAU Executive Chairman Luke Norman said the company is advancing financing discussions for its fully permitted CK Gold Project in Wyoming, with management targeting a predominantly debt-funded construction package for the estimated sub-$400 million development.

Speaking at an investor conference, Norman described CK Gold as a shovel-ready copper and gold project located about 20 miles west of Cheyenne, Wyoming. He said the project benefits from its location on state land, access to nearby highways and rail infrastructure, available labor in the Cheyenne area, and a power off-take agreement tied to the regional grid.

CK Gold Financing and Development Timeline

Norman said the company has approximately $25 million in treasury, which it intends to preserve for corporate operating needs rather than apply toward mine construction. The company is pursuing project-level financing to cover the expected development cost.

“The intent is to raise the full $400 million and do it through predominantly debt,” Norman said. He added that the company is also discussing potential silver-streaming arrangements and equity financing structures designed to minimize dilution, including convertible equity at premiums to market.

According to Norman, US Gold is reviewing multiple financing term sheets and is engaging advisors to manage the process. He said management would like to reach a definitive financing agreement around January, though no final agreement has been announced.

The company expects construction to take about 18 months after financing is finalized. Norman said the timeline toward potential production remains achievable, although he acknowledged that it has “dragged on a little.”

Project Economics and Expansion Opportunities

Norman said CK Gold contains a reported gold-equivalent reserve of roughly 1.6 million ounces, including gold and copper, with an 11-year mine plan. The company is seeking to increase annual production toward approximately 100,000 ounces over roughly 10 years, he said.

He characterized the project as an open-pit operation that would produce a gold-and-copper concentrate for sale at the mine gate, avoiding the need to construct smelting facilities. Norman cited estimated all-in sustaining costs of approximately $1,700 to $1,800 per ounce.

Management sees several potential sources of additional value beyond the current reserve plan:

• Further drilling to expand the deposit, which Norman said could potentially grow toward roughly 3 million ounces.
• Potential recovery of gold currently expected to remain in flotation tailings. Norman said nearly 300,000 ounces could be present in those materials, though the company has not finalized a processing method or disclosed economic estimates.
• Sales of granodiorite aggregate produced during mining operations. Norman said the company expects 40 million to 50 million tons of material could be available and has received interest from potential commercial buyers, including rail-related customers.

Norman said aggregate sales could either provide an upfront cash benefit through a partnership or contribute revenue during mining operations. He added that the aggregate business could outlast the planned gold-and-copper production period.

Keystone Project and Strategic Alternatives

Norman also discussed the company’s Keystone exploration project in Nevada, which he described as a 20-square-mile district near Nevada Gold Mines’ Cortez operations. He said prior scouting work identified altered Wenban geological formations and other characteristics that management believes are similar to those associated with nearby gold deposits.

US Gold has considered separating Keystone into a standalone company to allow CK Gold to remain the company’s principal development focus while preserving shareholder exposure to the Nevada exploration asset. Norman said the company is working through legal and structural complexities associated with a potential transaction, particularly because US Gold is a U.S. company.

“It needs to be self-funded,” Norman said of Keystone exploration, adding that management does not want to dilute the CK Gold development asset to fund a large exploration program.

On possible strategic transactions, Norman said the company’s main focus remains financing and developing CK Gold. However, he said the company continues to speak with interested mid-tier mining companies and has an advisor working on that side of the business.

Norman said management expects more updates in the coming weeks as financing discussions progress.

About US Gold (NASDAQ:USAU)

U.S. Gold Corp. NASDAQ: USAU is a U.S.-focused exploration and development company engaged in the discovery and advancement of gold and copper deposits. The company's activities include geological evaluation, drilling, resource definition, project permitting and other work intended to assess the economic potential of its mineral properties.

U.S. Gold's principal asset is the CK Gold Project in Wyoming, a gold-copper development project located near the historic mining district of the central part of the state.

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