Teranga Gold has received a letter of commitment from Taurus Funds with regards to a $200 million loan to finance its gold projects in Burkina Faso.
Per the terms of the deal which will be concluded in the third quarter of this year, Teranga will received $165 million as a first tranche to develop Wahgnion Gold Project and repay $15 million bank debt. Another $25 million will be used to advance activities on Golden Hill gold project by funding a feasibility study. The last tranche concerns an equipment lease worth $10 million whose terms are still being evaluated by Teranga.
“We are very pleased to partner with Taurus to fulfill our dream of becoming the next multi-asset mid-tier gold producer in West Africa,” Richard Young, Teranga’s Chief Executive Officer said.
Construction on its Wahgnion project started last fall. The project will be the company’s second gold mine to enter its operational phase (as of the end of 2019), after Sabodala mine in Senegal. It is expected to increase Teranga’s annual gold production by 50 percent to between 300,000 and 350,000 ounces.
Its Golden Hill project, is one of West Africa’s most exciting and promising exploration projects.
Teranga Gold business in Burkina Faso is a fully permitted, high-grade, open pit project located in the south-west of Burkina Faso in a major gold producing district, host to several world class gold deposits. Teranga owns 90 percent of the project while the Burkina Faso government owns the remaining 10 percent.