Nativo signs LoI for La Patona gold plant funding in Peru

Nativo signs LoI for La Patona gold plant funding in Peru

Fri, September 18, 2026 at 6:19 PM GMT+3 2 min read

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Nativo Resources has signed a conditional letter of intent (LoI) with Chancery Royalty for project finance and an equity subscription aimed at completing the construction and commissioning of phase one of the La Patona Gold Ore Processing Plant in Acarí, Peru.

The processing facility is located around 45km from Nativo's Tesoro Gold Concession.

Under the terms outlined, Nativo is expected to receive $3.5m (£2.62m) in project finance, provided through seven equal monthly instalments of $500,000 each.

The first instalment is scheduled to be made by no later than 31 December 2026, subject to definitive documentation being agreed.

Funds from the facility are earmarked solely for construction, commissioning and associated infrastructure linked to La Patona phase one, along with specified working capital requirements, and cannot be allocated to service or repay existing indebtedness.

An equity subscription valued at £600,000 will also be completed in two stages.

The first tranche will see Chancery Royalty subscribe for 142,857,143 new ordinary shares at 0.21p each, raising £300,000, with completion expected 60 days after the agreement, subject to routine conditions.

The second tranche, to be completed by investors introduced by Chancery, involves an identical number of shares and proceeds on broadly the same terms, to be settled by the end of September 2026.

Both tranches together would grant the new investors a combined 17.4% stake in Nativo's enlarged issued share capital.

In return for the project finance, Chancery will be granted a 6% gross revenue share on gold produced at La Patona, until receipts equal to 3,034 troy ounces of gold.

Nativo CEO Stephen Birrell said: "We are very pleased to have entered into this binding agreement with Chancery, which provides a clear and fully funded pathway to complete the construction and commissioning of La Patona Phase 1.

"La Patona is already a substantially developed asset on which several million dollars of capital has been invested, and this agreement provides the funding to take it through to production."

Nativo expects construction and commissioning of the 70 tonnes per day (tpd) plant to take approximately five to six months once resumed, with commissioning targeted for the second quarter of 2027.

The company also aims to fund future expansions, which could raise capacity to 350tpd, using cash generated from phase one operations.

"Nativo signs LoI for La Patona gold plant funding in Peru" was originally created and published by Mining Technology, a GlobalData owned brand.