Antilles Gold (ASX:AAU) executed a $29.5 million binding memorandum of understanding, under which Shandong Xinhai Mining Technology Systems will conduct the engineering, procurement, and construction contract for the Nueva Sabana mine in central Cuba, according to a Thursday Australian bourse filing.

Parties to the agreement are Xinhai, Antilles Gold, Minera La Victoria, which is developing the mine, and Antilles Gold's unit Antilles Gold Inc., a 50% shareholder of Minera La Victoria.

Minera La Victoria will enter an operating and maintenance contract with Xinhai for the concentrator it will supply under the engineering, procurement, and construction contract.

Xinhai committed under the agreement to provide a $17.1 million credit facility for the mine construction by deferring part of its monthly progress claims from the engineering, procurement, and construction contract for up to 18 months after the mine's commissioning.

Antilles Gold accepted an application from Zhang Zhongyi to subscribe for 590 million of its shares at AU$0.007 each for AU$4.1 million. Zhang, a senior executive at Xinhai, is expected to join the board of Antilles Gold after taking up the 19% stake in the firm.