Thor Explorations Ltd (CVE:THX) updated on the financing for its Segilola gold project in Nigeria on Friday, as it announced that the Toronto Venture Exchange has granted a 30 day extension to close the C$20 million (US$15 million) offering it unveiled in August.
In a statement, the company also said it had received conditional approval from the TSX Venture Exchange for the first tranche of its proposed US$15 million placing with Africa Finance Corporation (AFC) - the second highest investment-grade-rated financial institution in Africa - which was announced in April.
READ: Thor Explorations launches C$20M private placement to bolster West African projects
Thor Explorations said it had received the first US$6 million in subscriptions from the offering announced in August and was in advanced discussions with a number of parties who are currently completing their required due diligence on the company.
As reported in April, the firm struck a term sheet for a US$78 million financing package with AFC for developing Segilola.
The funding package consists of a US$54 million senior secured credit facility, a US$9 million gold stream pre-payment and a US$15 million equity investment from AFC.
Thor said today it intended to draw down the first US$7 million of the AFC equity. The second US$8million of the equity will be available on the financial closing of the US$63mln AFC debt facilities.
The credit facility has a five year term and an interest rate of the LIBOR interbank lending rate plus 9%, while the gold stream applies to 4.4% of production where the company will receive 30% of the prevailing market price up to a maximum of 2.25 times' money multiple on the deposit amount.
Detailed design work
"Detailed design work on the Segilola Project is in progress and we are on track to break ground in Q4 this year," said Segun Lawson, Thor Exploration's president and CEO in the statement.
"We look forward to completing the current equity placements and AFC debt documentation, at which point, the Segilola project will be fully funded."
Thor holds a 100% interest in the Segilola project, which lies in the Osun State of Nigeria, and a 70% interest in the Douta gold project, which lies in south-eastern Senegal.
Thor also holds a 49% interest in the Bongui and Legue gold permits located in Houndé greenstone belt, south west Burkina Faso.
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