- 300 million USD (about 180 billion FCFA) mobilised
- The company’s second mine after Sanbrado
- Lycopodium and Metso Outotec Companies win construction contracts
Australia’s West African Resources has completed the first stage of debt financing for the construction of the Kiaka mine (in the commune of Gogo, Zoundwéogo Province), its second gold project in Burkina Faso. The company has received 300 million US dollars (about 180 billion FCFA) from eight financiers, according to a press release issued on 5 December 2022 by West African Resources. Kiaka has a reserve of 7.7 million ounces of gold.
Commenting on the event, West African’s executive chairman Richard Hyde said: “We are extremely pleased with the strong interest shown by the major international financiers and their continued participation in the debt financing process for the Kiaka gold project. He believes that strong competitive bids and the high quality of the Kiaka ore facilitated the raising of the 300 million dollar financing.
These financings will put West African in a strong position to fund Kiaka, particularly given Sanbrado’s significant cash flow contribution and strong balance sheet.
As a reminder, West African operates Sanbrado, its first mine in Burkina Faso located in the Ganzourgou province.
The engineering, procurement and construction management services for the carbon leach plant will be carried out by Lycopodium, a company based in Perth, Australia, with long experience in Burkina Faso. It has worked on the construction of mining sites in Houndé, Karma, Natougou, Bissa, Bouly, Wahgnion, Bombore and Sanbrado.
The company Metso Outotec was chosen to install all the mills (18 MW SAG mills and 9 MW ball mills), the press release said.
This company has already delivered more than 40 mills to countries in West Africa, the most recent of which were for Sanbrado. This makes the executive chairman say: «We are pleased to team up with Lycopodium and Metso Outotec again after our successful partnership on the Sanbrado construction, which was completed ahead of schedule and under budget».
The Kiaka mine received its mining permit on 08 July 2016. Its mining convention was signed on 26 February 2019. In 2021, West African Resources acquired the Kiaka licence for 90.5 million dollars from the company B2Gold.
Elie KABORE
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