On February 5th 2019, Thor Explorations completed a definitive feasibility study of a project to build an open-pit mine at its Segilola gold project in Nigeria.
The company has now announced that it has struck a term sheet for a USD 78 Mn financing package for the construction and ramp-up of its 100 percent owned Segilola Gold Project.The agreed terms are with the Africa Finance Corporation (AFC).
The funding package entails a USD 54 Mn senior secured credit facility, a USD 9 Mn gold stream pre-payment and a USD 15 Mn equity investment from AFC.
The financing is subject to mutually satisfactory documentation, AFC Board approval, completion of due diligence and other customary conditions precedent which are expected to be completed in May 2019.
Segun Lawson, President & CEO of Thor Explorations Ltd, stated, “This is an extremely significant milestone for Thor and for the mining sector of Nigeria. Our DFS demonstrated the robustness of the Segilola Gold Project and now we are pleased and looking forward to partnering with AFC as both a lender and a long term shareholder of Thor. Our vision for the Segilola Project is aligned and we look forward to successfully implementing this landmark project in Nigeria”
In order for the project to be fully funded to production, including financing costs, cost overruns, and other exploration activities during construction, Thor will seek a further USD 18 Mn from debt or equity sources.
Following the investment approval, the company will proceed with Turnkey Engineering Procurement and Construction (EPC) contract finalisation and start of construction works with first production targeted within 18 months of EPC commencement
Lawsom did mention that Thor recently completed a preliminary economic assessment on the Segilola underground resource and he reveals that it showed a ‘great potential.’ The company remains hopeful that further drilling and exploration during the open-pit construction will increase reserves.
Segilola Gold Project is considered one of the most advanced gold project in Nigeria.
Thor Explorations Limited is a Canadian mineral exploration company engaged in the acquisition, exploration and development of mineral properties located in Nigeria, Senegal and Burkina Faso.
Featured Image Courtesy: telegraph.co.uk