Tietto Minerals Ltd secures up to $140m in debt financing to build West Africa’s next gold mine in Abujar

The Company is focused on accelerating the development of the Abujar Gold Project, targeting first gold in the December 2022 quarter.

Tietto Minerals Ltd (ASX:TIE) has secured debt financing of up to US$140 million to build West Africa’s next gold mine at the Abujar project in Ivory Coast.

The company has engaged Taurus Mining Finance Fund No.2 LP, a dedicated resource fund manager, to provide a secured project development facility in the amount of US$130-140 million over a five-year loan period. year.

Promisingly, Tietto is well funded and is targeting first gold in Abujar in the December 2022 quarter.

“Certainty for shareholders”

Tietto’s Managing Director, Dr. Caigen Wang, said, “Securing financing with Taurus provides certainty for shareholders and comes within six weeks of delivery of the Abujar DFS.

“We are extremely happy to work with Taurus, who can provide the necessary funds on time.

“Our experienced project construction team has advanced early work and are now confident that debt financing will be in place as they proceed with the major works required to develop the Abujar gold project in the next West African gold mine.”

Debt financing

Tietto has commissioned Taurus to provide a secured project finance facility to be used to finance the development of Abujar.

Taurus will endeavor to complete its due diligence on the project before providing a committed financing offer.

Although the full terms of the funding are confidential, the key points are:

  • Project loan facility between $130 million and $140 million;
  • Five-year loan facility with repayments beginning June 30, 2023;
  • The usual loan covenants for an installation of this type and reflect the competitive nature of the current market;
  • Mandatory gold cover required;
  • Early redemption is permitted at any time without penalty; and
  • Security to be provided by the guarantee.

The conclusion of definitive financing agreements remains subject to due diligence, documentation and other conditions precedent customary for financings of this nature.

Abujar Definitive Feasibility Study

Abujar Definitive Feasibility Study (DFS) demonstrated robust financial results and estimated first year gold production of 260,000 ounces and 200,000 ounces per annum in the first six years of life of the 11-year-old Abujar mine for a 5% NPV of A$1.3 billion (pre-tax) and A$0.97 billion (after-tax) using US$1,700 per ounce and 0.74 Australian $/US$.

With a total investment of US$200 million from DFS, the US$8.65 million preliminary works program is nearing completion, including initial engineering and design (FEED), construction of the site and camp.

Tietto is well funded, with approximately A$32.8m cash in the bank at the end of September 2021 and expects up to a further A$10m on exercise of options by the end of September. December 2021.

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