West African Resources (ASX:WAF) has drawn down the first US$100 million of a US$265 million debt facility to support the development of its Kiaka Gold Project in Burkina Faso.
The $969.67 million market capitalisation signed the funding deal with Sprott Resource Lending and Coris Bank International in late-June 2022.
Under the terms of the deal, the loan facility will be provided under a two-tranche structure, with $165 million under tranche one and the equivalent of US$100 million denominated in CFA Francs (XOF) under tranche two.
With the first US$100 million now drawn down, West African Managing Director Richard Hyde says the company has bolstered its balance sheet, with the building of Kiaka ‘well underway’ and on-track for first gold in the second half of 2025.
“Kiaka will be a long-life, low-cost gold project averaging 219,000 ounces of gold production per annum for 18.5 years.
WAF has an unhedged resource base of 12.6 million ounces, and we aim to be producing more than 400,000 ounces of gold annually from our 2 mines from 2025.”
“we aim to be producing more than 400,000 ounces of gold annually from our 2 mines from 2025”
Coris Chairman Idrissa Nassa says Kiaka is a ‘world-class’ project that is set to have a ‘significant economic and social impact’ on communities in Burkina Faso.
“We are very proud to provide local funding for the Kiaka Gold Project. We would also like to congratulate the WAF, Sprott, and Coris teams for their excellent collaboration, which led to the closing of the financing.”
West African Resources already produces gold from its Sanbrado Gold Project near the Burkina Faso capital of Ouagadougou. The project covers 116km-square and comprises one granted mining tenement and one granted exploration licence.
Write to Joshua Smith at Mining.com.au
Images: West African Resources
