(Ecofin Agency) - Teranga Gold announced yesterday March 12 that it has received a commitment letter from Taurus Funds for a $200 million loan to finance its gold projects in Burkina Faso.
In details, the finance facility, whose terms will be concluded in Q3 2018, includes a $165 million first tranche to develop Wahgnion gold project and repay $15 million bank debt. In addition, another $25 million will be used to advance activities on Golden Hill gold project by funding a feasibility study. The last tranche concerns an equipment lease worth $10 million whose terms are still being evaluated by Teranga.
“We are very pleased to partner with Taurus to fulfill our dream of becoming the next multi-asset mid-tier gold producer in West Africa,” Richard Young (photo), Teranga’s CEO said.
The construction of Wahgnion project started last fall. This project will be the company’s second gold mine to enter its operational phase (as of the end of 2019), after Sabodala mine in Senegal. It is expected to increase Teranga’s annual gold production by 50% to between 300,000 and 350,000 ounces. As for Golden Hill, it is one of West Africa’s most exciting and promising exploration projects.