https://www.engineeringnews.co.za

Cora secures $21m term sheet to fund Sanankoro construction

18th June 2020

By: Tasneem Bulbulia

Deputy Editor Online

     

Font size: - +

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.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

ALBIS FLANGES (Pty) Ltd
ALBIS FLANGES (Pty) Ltd

ALBIS FLANGES — founded in 1965 — is a petro-chemical approved manufacturer of flanges and fittings in most grades of steel, listed with Sasol,...

VISIT SHOWROOM 
Sulzer Pumps (SA) (Pty) Ltd
Sulzer Pumps (SA) (Pty) Ltd

Sulzer South Africa, established in 1922, partners with critical industries like power, oil & gas, water, mining, and chemicals to boost...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.049 0.857s - 140pq - 2rq
Subscribe Now