Tietto Secures Up To $ 140 Million In Debt Financing To Build Abujar Gold Project
Tietto Minerals engaged Taurus Mining Finance Fund No.2 LP, a dedicated resource fund manager, to provide a project development facility of up to US $ 140 million of debt financing needed to build the Abujar gold project in Côte ivory.
Tietto MD Dr. Caigen Wang said securing the financing with Taurus provides certainty for shareholders and comes within six weeks of delivery of Abujar’s DFS.
“We are extremely happy to be working with Taurus, who can provide the necessary funds on time. Our experienced project construction team moved the initial work forward and are now confident that the debt financing will be in place as they proceed with the major work needed to develop the Abujar Gold Project into Africa’s next gold mine. from West.
- Project development facility subscribed for an amount between 130 and 140 million US dollars on a 5-year loan
- The usual loan covenants for a facility of this type and reflect the competitive nature of today’s market.
- Early repayment allowed at any time without penalty
- No mandatory gold hedging is required
- Exploration will continue during the construction period using Tietto’s low cost drilling fleet
- Abujar DFS has demonstrated strong financial results and estimated first year gold production of 260,000 ounces and 200,000 ounces per year during the first six years of the Abujar mine life, a NPV of 5% of A $ 1.3 billion (before tax) and A $ 0.97 billion (after tax) using US $ 1,700 / oz and A $ / US $ = 0.74
- For DFS total US $ 200 million investments, a US $ 8.65 million preliminary works program nearing completion, including FEED, site and camp construction
- Tietto is well funded, with around A $ 32.8 million in cash in the bank at the end of September 2021, and plans up to an additional A $ 10 million in option exercise premium by the end of December 2021.
- Tietto aims for first gold in Abujar in Q4 CY2022