West African Resources (ASX:WAF) has announced its final drawdown from a US$265M loan partly backed by Sprott to finish building on-site infrastructure at the Kiaka project.
WAF has now taken the last US$100M out of that facility, also pointing to existing cash reserves on Friday. A Burkina Faso-based bank, Coris, also teamed up with commodities giant Sprott.
By Q3 of CY2025, West African Resources expects to pour the first gold from its second largest operation.
With that, the company anticipates to become a mid-tier gold producer putting out over 400,000 ounces of gold per year. But zooming out, management has bolder ambitions yet.
“WAF is on track to produce 4 million ounces over the next decade, with annual production set to peak in 2029 at 473,000 ounces of gold,” company EC Richard Hyde said.
“Our unhedged resources now stand at 12.8 million ounces and Ore Reserves at 6.1Moz of gold … the final US$100m from Burkina Faso based Coris Bank strengthens WAF’s cash and bullion position of US$320 million for completing construction of Kiaka.”
The company reported on Friday that all relocations have been completed; perimeter fencing is “practically complete” and that leaching and cyanide storage infrastructure are progressing in line with expectations.
WAF last traded at $1.46/sh.