Perseus Mining has approved the construction of its third gold mine, the Yaouré gold project in Côte d’Ivoire.
With a forecast capital cost of US$265 million ($378.7 million), Perseus aims to have the mine in production by December 2020.
The decision by Perseus’ board follows the recent grant of an exploitation permit by the Côte d’Ivoire Government for the company’s Ivorian subsidiary, Perseus Yaouré SARL.
Perseus’s development funding plan includes deploying a US$150 million revolving credit facility, alongside US$40 million of underwritten warrants.
It will also use US$81 million of existing cash and bullion from other gold mines and future cashflows.
The development of the mine will take immediate effect, allowing for the execution of engineering and supply contracts between Perseus and engineering company, Lycopodium.
Perseus has previously collaborated with Lycopodium on the development of its Sissingué gold mine, also located in Côte d’Ivoire.
The approval of the mine adds to Perseus’ growing portfolio, which also includes the Edikan mine in Ghana.
Perseus’ chief executive officer and managing director Jeff Quartermaine said the company was excited to continue its development in West Africa.
“A large amount of effort has gone into preparation and planning of the development of Yaouré and with the experience that our team developed from the successful execution of the Sissingué Mine development plan,” Quartermaine said.
“We are confident that Yaouré will also be developed on time and on budget and in the process further establish Perseus’s reputation as a reliable and capable developer and operator of gold mines in West Africa.”