Lahontan Gold: West Santa Fe M&A Plus Permitting Milestones Pave Path to 2027 Construction
CEO.CA Sep 29, 2026 10:51
Summary
Lahontan moved to 100% ownership of West Santa Fe for about 4% dilution, erasing $1.73 million of debt and a royalty on the York claims.
An updated resource estimate rose 22% to 2.4 million ounces at a 0.78 g/t grade after management lowered the cutoff grade.
The final permit application document is due within weeks, keeping the mine permit on track for Q2 2027 and a first gold pour in 2027.
Drilling at all-oxide West Santa Fe targets a maiden resource by June; ore could feed the Santa Fe plant at near-zero extra capex.
The roughly $135 million build is planned as 80% debt and 20% equity, targeting AISC (all-in sustaining cost — what it really costs to produce an ounce) under $1,500.
Kimberly Ann's takeaways
- Top takeaway Her core message is that Lahontan will build Santa Fe: she argues the steady news flow and on-the-ground execution are proving it, with a first gold pour targeted in 2027 and a valuation she sees growing as milestones land.
- Calls the West Santa Fe acquisition effectively free at about $1.8 million once the $1.73 million debt elimination is counted, and says she pulled the trigger early because newly found mineralization near the Calvada York pits would have forced pit laybacks later.
- Prefers a straight financing of roughly 80% debt with minimal equity, arguing that a payback under a year and a half and costs under $1,500 per ounce make debt the clean structure, and says her background working at a debt fund informs that choice.
- Deliberately waited for critical mass before taking on senior salaries, and is now hiring production-focused leadership (a full-time CFO, VP of Exploration, mine engineer and IR lead) ahead of construction rather than during production.
- Promises full transparency with shareholders, saying she will proactively report if timelines slip rather than let investors sit through months of silence.