- West African Resources (WAF) is fully funded to first gold at its Kiaka gold project in Burkina Faso, West Africa
- The company secured a US$265 million (A$400 million) loan facility to accelerate the development of the project
- The company mandated Sprott Resource Lending Corporation and Coris Bank International SA to provide the loan facility
- The first drawdown of the facility is expected in Q4 2023
- Shares lifted 3.59 per cent to 86.5 cents at 3:56 pm AEST
West African Resources (WAF) has announced its fully funded to first gold at its Kiaka gold project in Burkina Faso, West Africa.
The company has mandated Sprott Resource Lending Corporation and Coris Bank International SA to provide a $265 million (A$400 million) loan facility to develop the project.
Terms of the loan include a two-tranch structure, the first one of $165 million and a second tranche to the equivalent of $100 million denominated in CFA Francs.
As part of the fixed production payment agreement (PPA), West African Resources will have to pay $12.44 on the first 1.5 million ounces of gold produced from Kiaka, with the right to buy back the PPA.
Repayments will start two years after the closing date with final repayments to occur five years after the closing date.
“Kiaka is one of the best gold projects in development globally. Construction is well underway, and we look forward to completing the build at Kiaka and pouring first gold in the second half of 2025,” WAF Chairman and CEO Richard Hyde commented.
“WAF is on track to become a +400,000 ounce per annum gold producer with the development of Kiaka.”
West African Resources lifted 3.59 per cent to 86.5 cents at 3:56 pm AEST.