Perseus receives funding to boost growth strategy

Image: Perseus Mining

Perseus Mining has secured US$60 million ($79 million) of debt financing from Macquarie Bank to fund its gold operations in Africa.

The financing includes a US$40 million ($52 million) project debt facility to fund the development of the Sissingué gold mine in Cote d’Ivoire.

The mine, within the Tengrela gold project, is expected to cost around $US64 million ($84 million) – which will be funded by a combination of Perseus’ internal cash resources and the project loan provided by Macquarie.

First gold production from the mine is set to begin in the March 2018 quarter.

A second US$20 million ($26 million) debt facility has been provided to Perseus’ Ghanaian subsidiary Perseus Mining (Ghana) over the next 12 months for exploration and corporate expenses, and as production at the Edikan gold mine ramps up.

Gold production at Edikan has increased since December 2016. Between January 1 and March 10 2017, production reached 37,789 ounces; 17 per cent more than the December 2016 quarter production of 32,426 ounces.

Perseus CEO and managing director Jeff Quartermaine welcomed the funding for the continued development of the company’s projects.

“Accessing the funding required to finance our corporate growth strategy, without recourse to the equity capital markets, is a very positive and important step forward for Perseus on its path to transforming into a multi-mine, mid-tier gold mining company,” he said.

“As well as continuing the strong recent operating performance at Edikan, we can now also look forward to successfully completing the Yaouré Definitive Feasibility Study in the September 2017 quarter and commencing gold production and cash flow from our second producing mine, Sissingué, in early 2018.”

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