Photo by: Bloomberg
PERTH (miningweekly.com) – Junior gold developer Gryphon Minerals has secured a $60-million loan facility and hedging and cost over-run facilities from Macquarie Bank, to develop its Banfora gold project, in Burkina Faso.
Earlier this week, Gryphon became the first Australian company to be granted a mining permit in Burkina Faso, allowing the company to start the phased development of its 3.6-million-ounce project.
“The appointment of Macquarie to provide debt financing represents a significant step towards the development of the Banfora gold project. Gryphon has undertaken a rigorous and strongly contested tender process for the project finance facilities, and has negotiated some very competitive terms, which has resulted in the selection of Macquarie,” said Gryphon MD Steve Parsons.
He noted that with the A$43-million in cash and investments at the end of the March quarter, along with the proposed Macquarie senior loan facility, Gryphon was in a strong position to fund the development of Banfora, and to start its transition to gold producer.
The project loan facilities would be subject to a number of conditions, including the completion of the feasibility study, due diligence and final credit approval.
The feasibility study would be completed by mid-2014, while an exploration programme was also under way at Banfora, targeting shallow oxide gold mineralisation.