Thor Explorations announced that has executed an agreed term sheet with the Africa Finance Corporation for a $78m financing package for the construction and ramp-up of its 100% owned Segilola Gold Project in Nigeria.


Image: A gold mineral. Photo: courtesy of carlos aguilar/

This follows the completion of the Project Definitive Feasibility Study (“DFS”) announced on 4th February 2019.

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.


Total funding of US$78 million

US$54 million senior secured credit facility, a US$9 million gold stream prepayment and a US$15 million equity investment from AFC

Introduction of a new strategic investor into Thor – AFC, a pan-African multilateral development finance institution

Thor to 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

For the Company to be fully funded to production, including financing costs, cost overrun capacity, general corporate purposes and other exploration activities during the construction period, the Company will also be seeking to raise an additional of US$18m from debt or equity sources.

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”

Senior secured credit facility (the “Facility”):

Five year term from Financial Close

21 Month Moratorium after financial close on Principal

Interest rate of LIBOR + 9.0%

Issue of 17,602,941 ordinary shares Issued to AFC (subject to regulatory approvals)

The Facility is secured against assets of Thor’s wholly owned subsidiary, Segilola Resources Operating Limited (“SROL”) and is guaranteed by Thor until fulfilment of certain milestones

Gold Stream Agreement (the “Stream”)

US$9 million deposit

The Stream applies to 4.4% of gold production where the company will receive 30% of the prevailing market price up to a maximum of 2.25x money multiple on the deposit amount

Offtake Agreement (the “Offtake”)

Applies to 95.6% of gold production up to the maximum recoverable ounces at financial close

Equity Placement:

AFC to purchase 99,750,000 of Thor’s ordinary shares through a placement at a purchase price of $0.20 per share for $19,950,000 (US$15,000,000).

Source: Company Press Release