Perseus Mining has secured a $US150 million ($214.5 million) cash advance facility to develop the Yaouré gold project in Cote d’Iviore, West Africa.
The funding will be used for the refinancing of $US31.5 million of existing project loans and further driving the ramp up of the Yaouré operation.
Development work at Yaouré has already begun with Purseus purchasing long-lead items of plant and equipment, the progressive assembly of the company’s development team and early site works.
Perseus chief executive Jeff Quartermaine said the funding would allow the company to fast track work at the site.
“Full scale activities can now be accelerated safely in the knowledge that all funds required to develop our third gold mine will be available when the conditions precedent to drawdown are satisfied,” he said.
Quartermaine added the capital would allow Yaouré to be developed on time and on budget, while also producing more than 500,000 ounces of gold at an all-in site cost of less than $US850 an ounce.
The money will also be used to continue exploration in the Yaouré region, according to Quartermaine.
“We recognise the enormous untapped exploration potential within the Yaouré tenements and with access to funding required to fund exploration from our two operating mines at Edikan and Sissingué, we expect to be able to materially add to the expected life of the Yaouré operation,” he said.
“Planning of this exploration is under way and we hope to be able to progressively announce the results of an exciting financial year 2020 exploration program.”
The loan will be provided to Perseus by three international banks comprising of Macquarie Bank in Austraila, Nedbank from South Africa and Societe Generale of France.
Perseus will also continue to hedge the sale price of its gold production in line with its policy of no more than 30 per cent of projected gold production in any given year.
The company’s hedge book includes deferred fixed forward sales contracts for 54,000 ounces of gold and spot deferred contracts for 221,000 ounces of gold, with the weighted average sale price being $US1297.
Its hedgebook will result in future gold production being hedged to 30 per cent in financial year 2020, 25 per cent in 2021 and 20 per cent in 2022.