Among other things, the debt funding will be used to develop the company’s third gold mine, the Yaouré Gold Mine in Côte d’Ivoire - estimated to cost US$265million.
Funding is subject to execution of formal documentation and and other conditions including the grant of an Exploitation Permit by the Ivorian government and final board approval.
Perseus plans to proceed with the development of Yaouré in accordance with its strategic plan of producing more than 500,000 ounces of gold per year at an all-in site cost of less than US$850 per ounce from 2022.
Perseus’s CEO and managing director Jeff Quartermaine said: “The agreement on the terms of the debt facility with our banking syndicate was a critical step that needed to be completed to enable the development of the Yaouré Gold Mine.
“Perseus acquired Amara Mining plc in April 2016 with the specific objective of developing the Yaouré, which was then considered one of the best undeveloped gold resources in West Africa.
“Since acquiring the project, our technical teams have validated our original belief and methodically created a compelling commercial case to develop the gold mine.
Final piece of funding puzzle
“With our international banking syndicate agreeing to provide debt finance, we have put in place the final piece of the funding plan required to deliver our original vision.
“As a management team we believe that the Mineral Resources and Reserves reported to date represent a proportion of the potential of this property.
“We are looking forward to the challenge of, firstly, developing Yaouré on time and on budget and then operating the gold mine in line with expectations.
“In addition to this, we recognise the enormous untapped exploration potential within the Yaouré tenements and with access to funding we expect to be able to materially add to the expected life and value to investors of this operation.”
Interest payable is LIBOR + variable margin
Interest payable on the loan will be LIBOR plus a margin that initially will be 4.25% and will vary in line with the company’s leverage ratio.