Cora secures $21m term sheet to fund Sanankoro construction
West Africa-focused Cora Gold has signed a $21-million mandate and term sheet with investment firm Lionhead Capital Advisors, to fund the future development of its flagship Sanankoro gold project in southern Mali.
This is conditional on, besides other matters, the completion of a definitive feasibility study (DFS) on the project before the end of 2021.
Lionhead is acting as lead investor and arranger on behalf of a consortium of investors including the founders of LionOre Mining International, as well as the initial investors in Mantra Resources.
Cora nonexecutive director Paul Quirk is a founding partner and director of Lionhead. The Quirk Family are potential beneficiaries of trusts that own around 34% of Cora through Brookstone Business and Key Ventures Holding.
The term sheet requires Cora to deliver a DFS with a minimum of six years mine life at 40 000 oz/y gold production; and a 60% internal rate of return (IRR) based on a $1 400/oz gold price.
“The term sheet is fantastic news for Cora and, importantly, significantly de-risks the Sanankoro gold project.
"The $21-million project financing will fund the Sanankoro gold mine based on our scoping study economics, following completion of a positive DFS by the end of 2021. This is a very strong endorsement for Sanankoro from an investment group linked with our largest shareholder and a consortium of highly experienced and successful natural resources investors on competitive terms.
"Sanankoro has the potential to be a highly profitable oxide mine with the scoping study highlighting an average free cash flow of $24-million a year and a 107% IRR at a $1 500/oz gold price,” says Cora CEO Bert Monro.
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