Thor Explorations Ltd.(CVE:THX) took another step in realizing its Segilola gold project in Nigeria, with the signing of the engineering, procurement and construction contract (EPC) with infrastructure giant Norinco International.
It is for the sum of US$67.5 million for the full delivery of design, engineering, procurement, construction and commissioning of the proposed 650,000 ton per annum processing plant within 18 months of the start date and includes guarantees for construction schedule and plant performance.
DEEP DIVE: Thor Explorations Ltd. hits another milestone in its plans to open up Nigeria to gold mining
The paperwork was finalized on May 31 during the 10th International infrastructure investment and construction forum in Macao, China and was witnessed by Frank Odoom, from the Ministry of Mines in Nigeria and Abdulaziz M. Dankano, consular general of Nigeria to Hong Kong and Macao.
"We are delighted to have reached another important milestone at the Segilola Gold Project. This is a key contract that fixes the majority of the Project cost, guaranteeing both construction time and plant performance, materially de-risking the delivery of the project," said Thoe CEO Segun Lawson.
Preferred contractor
Norinco was selected as the Segilola preferred EPC contractor following an in depth review of options, the firm has said. It has recently delivered a major copper cobalt project in the Democratic Republic of Congo.
Certain conditions still apply before the EPC contract can begin, including financial close of the US$78 million Africa Finance Corporation (AFC) financing announced in April this year.
Norinco itself has also committed to provide US$6.5 million in financing. As a result of the AFC and Norinco financings and indicative terms provided by project’s consumables supplier for a US$1.9 million working capital arrangement, Segilola is now 89% funded - that's namely US$86.4 million of total project funding needed of US$97.6 million.
But as revealed at the end of April, Thor said it had begun a private placement for US$15 million.
Today, it said that financing was progressing well, and when successfully concluded, will mean the project is fully funded through construction into operation.
Shares in Toronto zipped up 7.7% to stand at $0.14.
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