- The resources will be released in 2 tranches
- Coris Bank has over 3.2 billion dollars in assets and branches in 09 countries
- Coris Bank has already financed major mining projects in Burkina Faso, Côte d’Ivoire, Mali and Guinea.
- Sprott is headquartered in Toronto with offices in New York, Carlsbad and Vancouver.
- Kiaka is located in the commune of Gogo, not far from Manga.
West African Resources (WAF) company announced on 29 June 2023 that it has secured full financing for the construction of its Kiaka mine through to first gold production. The financing was acquired through a loan of 265 million US dollars (approximately 160 billion FCFA). The resources were raised from Coris Bank International SA and Sprott Resource Lending Corp. The first drawdown of the loan facility is scheduled for the 4th trimester 2023. WAF’s Executive Chairman and Managing Director, Richard Hyde, said: “WAF has undertaken a comprehensive debt process which enables Kiaka to be fully funded to first gold. We are pleased to award the 265 million US dollars debt mandate to experienced mining financiers, Sprott and Coris Bank, on the basis of their committed and credit approved bids”. Kiaka is located in the commune of Gogo, not far from Manga.
Richard Hyde said: “Kiaka is one of the best gold projects under development in the world. Construction is well underway and we look forward to completing Kiaka and pouring the first gold in the second half of 2025. WAF is on track to become a gold producer of over 400,000 ounces per annum through the development of Kiaka. Our 10-year unhedged production outlook forecasts production of over 200,000 ounces of gold per annum in 2023 and 2024, and over 400,000 ounces of gold per annum from 2025 to 2032”.
Coris Bank International, regional leader in the financing of major mining projects in West Africa
Coris Bank is headquartered in Burkina Faso and is listed on the Regional Stock Exchange (Bourse Régionale des Valeurs Mobilières, BRVM), the regional stock exchange of the West African Economic and Monetary Union (WAEMU). The bank has more than 3.2 billion dollars in assets, branches in 09 countries and aims to become the leading commercial banking group in the West African region. Coris Bank is also the regional leader in the financing of major mining projects, notably in Burkina Faso, Côte d’Ivoire, Mali and Guinea.
On 7 June 2023, Coris bank announced that it had acquired Société Générale subsidiaries in Mauritania and Chad.
Sprott is an asset manager and a global leader in mining and real estate investments. Through its subsidiaries in Canada, the United States and Asia, Sprott strives to provide investors with best-in-class investment strategies that include exchange-traded products, alternative asset management and private resource investments. Sprott is headquartered in Toronto with offices in New York, Carlsbad and Vancouver, and its parent company, Sprott, are listed on the stock exchange.
Loan conditions
The resources will be released in 2 tranches, the first of 165 million dollars and the second of 100 million dollars. Repayments will begin 2 years after the transaction, with final repayment due 5 years after the closing date. Early repayment is permitted from year 3. The average interest margin on the 2 tranches is 5.3% per year over the reference rate. Together with this loan, existing cash and Sanbrado’s internal cash flow, WAF has all the funds it needs to see Kiaka through to commercial production. West African Resources is an Australian company that operates the Sanbrado mine. It acquired the Kiaka pemris in October 2021 from B2Gold company.
Elie KABORE
@eliekabore
#Mines_Actu_Burkina
