TSX-V- and NYSE-listed Mayfair Gold Corporation has entered into a subscription agreement involving a strategic equity investment of C$10-million and a non-binding term sheet for a C$300-million project finance facility with Macquarie Bank.

The funds will support the development of Mayfair's Fenn-Gib gold project, in Ontario.

Macquarie will subscribe to C$10-million worth of Mayfair shares at a price of C$4.26 apiece, while the C$300-million project finance facility will fund the majority of the C$450-million initial development capital required for Fenn-Gib.

The agreement between the companies also includes an offtake right in favour of Macquarie for the first 50 000 oz of gold produced each year, up to a maximum of 300 000 oz, priced at a published reference price less $50/oz.

"Entering into this engagement letter and financing term sheet represents an important milestone for Mayfair as we advance Fenn-Gib toward development. We are pleased to partner with Macquarie, a highly respected global financial institution with deep mining sector experience.

"The proposed financing provides a strong foundation for our broader project funding strategy while allowing us to maintain a disciplined approach to capital allocation and project execution. We believe Macquarie will be an excellent long-term partner as we advance Fenn-Gib and continue to grow the company," says Mayfair CFO Kevin Annett.

For Macquarie Americas mining finance head Mike Burns, Fenn-Gib stands out as a Canadian gold project with the potential to become a significant new producer.

"Mayfair has taken a disciplined approach to advancing and derisking the project, and we are pleased to bring Macquarie's global mining and project finance experience to support the next stage of its development. As a shareholder and through our engagement on the senior debt financing, we look forward to working with the Mayfair team as it advances Fenn-Gib towards construction and production," Burns concludes.