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- Tietto Minerals (TIE) is in talks to secure up to US$140 million (A$190.5 million) in debt funding to develop its Abujar Gold Project in West Africa
- Taurus Mining Finance Fund has agreed to underwrite a five-year development facility, however a formal offer is subject to due diligence being completed
- Abujar is expected to produce 260,000 ounces of gold over its first year and another 200,000 ounces per year for the first six years of the project’s 11-year mine life
- The company forecast the gold project would require US$200 million (A$272 million) capital expenditure and says it’s confident Taurus will secure the necessary funding
- Shares in Tietto Minerals are up 2.22 per cent at 46 cents each
Tietto Minerals (TIE) is in talks to secure up to US$140 million (A$190.5 million) in debt funding to develop its Abujar Gold Project in West Africa.
TIE has mandated the funding from a resource fund manager with a history of bank rolling gold projects, Taurus Mining Finance Fund.
Taurus has agreed to underwrite a five-year development facility, however a formal offer is subject to due diligence being completed on the project.
If all goes to plan, loan repayments will begin in mid-2023, and there would be no mandatory hedging required from TIE.
The Abujar Gold Project is expected to produce 260,000 ounces of gold over its first year and another 200,000 ounces per year for the first six years of the project’s 11-year mine life.
A Definitive Feasibility Study also forecast the gold project would require US$200 million (A$272 million) capital expenditure.
Tietto Managing Director Caigen Wang said he’s hoping to produce first gold from Abujar in Q4 2022, once the necessary funding was locked-in.
“We are extremely pleased to be working with Taurus who can deliver the funds needed on our timeline,” Dr Wang said.
“Our experienced project build team has been advancing early works and now have confidence the debt funding will be in place as they proceed with the major works needed to develop the Abujar Gold Project into West Africa’s next gold mine.”
Tietto Minerals were trading up 2.22 per cent at 46 cents per share at 11:43 am AEDT.
