Underwritten project development facility of between US$130M to US$140M over a 5 year loan
Tietto secures up to $140m debt funding to build Abujar Gold Project. (Credit: istara from Pixabay)
West African gold developer and explorer Tietto Minerals Limited (ASX: TIE) (Tietto or the Company) advises that it has mandated Taurus Mining Finance Fund No.2 L.P. (Taurus) a dedicated resources fund manager with a long history of investing in the West African gold sector to deliver a Project Development Facility of up to US$140M of debt funding necessary to build the Abujar Gold Project located in Côte d’Ivoire, West Africa (the Financing).
Highlights
➢ Underwritten project development facility of between US$130M to US$140M over a 5 year loan
➢ Loan covenants customary for a facility of this type and reflect the competitive nature of the current market.
➢ Early repayment allowed at any time without penalty
➢ No mandatory gold hedging required
➢ Exploration to continue during construction period using Tietto’s low-cost drilling fleet
➢ Abujar Definitive Feasibility Study (DFS) demonstrated robust financial results and estimated first-year gold production of 260,000oz and 200,000oz per year over the first six years of Abujar’s 11-year mine life for an NPV5% A$1.3B (pre-tax) and A$0.97B (post-tax) using US$1,700/oz and A$/US$=0.741
➢ For the total capex of USD$200M from the DFS, US$8.65M early work program nearing completion including front end engineering and design (FEED), site and camp construction.
➢ Tietto is well-funded, with ~A$32.8M cash at bank at end of September 2021 and anticipates up to a further A$10M in option exercise premium by end December 2021.
➢ Tietto is targeting first gold at Abujar in Q4 CY2022
Tietto Managing Director Dr Caigen Wang said securing the Financing with Taurus provides certainty for shareholders and comes within six weeks of delivering the Abujar DFS.
“We are extremely pleased to be working with Taurus who can deliver the funds needed on our timeline. Our experienced project build team has been advancing early works and now have confidence the debt funding will be in place as they proceed with the major works needed to develop the Abujar Gold Project into West Africa’s next gold mine.”
Source: Company Press Release