Cora Gold Ltd has signed a binding term sheet for a US$120 million (£80.3m) gold stream with its strategic investor Eagle Eye Asset Holdings Pte. Ltd to develop the Sanankoro project in southern Mali.
PERMITTING
Eagle Eye has already invested £13.7m for 228,452,356 ordinary shares, representing 29.90% of Cora’s issued share capital.
Under the terms of the gold streaming, the investor is entitled to buy 30.44% of gold produced at a price equal to 20% of the prevailing spot gold price.
Cora said it retained the right to replace 50% of the stream, representing US$60m (£44m), with traditional senior debt for up 240 days.
The company is progressing Sanankoro towards construction, alongside increasing the resource across the licence area for long-term production.
Chief executive officer Bert Monro added: “This US$120 million gold stream is a transformational milestone for Cora, significantly de-risking Sanankoro, providing a fully funded development project alongside our existing equity.
“As previously reported, permitting continues to progress well, supported by ongoing constructive engagement with the Government of Mali.
“As the final key regulatory step ahead of construction, permitting represents one of the last stages of de-risking as Sanankoro moves towards development.”