Tietto Minerals Ltd (ASX:TIE) could be well on its way to funding West Africa’s next gold mine after fielding strong interest from a series of prospective financiers.
The West African gold developer and explorer is working towards the construction stage for its flagship, 3.35-million-ounce Abujar Gold Project in Côte d’Ivoire and is on the hunt for a cash injection to support the project.
That could be well in reach, with the ASX-lister securing funding proposals for between US$120 million and US$180 million from leading offshore financial institutions.
The funding runway could take many forms, from a traditional bank project finance, debt funds, streamers or fixed income instruments.
At this stage, however, the offers are indicative and non-binding, meaning there’s no guarantee they’ll lead to binding project financing agreements or that the terms will be what Tietto is looking for.
But investors shouldn’t have to wait long for Tietto to follow its heart: the company expects to settle on a potential lender this month.
In the meantime, the ASX-lister continues to advance Abujar’s development with a US$8.65 million early work program underway.
Offers showcase project strengths
Tietto managing director Dr Caigen Wang said the indicative offers showcased the project’s technical and financial strengths.
“We are extremely pleased with the quality of the institutions that have indicated their interest to provide the project funds needed to develop the Abujar Gold Project into West Africa’s next gold mine.”
The strong response from prospective lenders comes not long after Tietto released some of the key findings for the project in its October definitive feasibility study (DFS).
Here, the company reported it expected to produce 260,000 ounces of gold at an all-in sustaining cost (AISC) of US$651 per ounce in the mine’s first year — up 30% on previous estimates.
Underpinned by 1.45 million ounces in ore reserves, the DFS outlines how Abujar can produce more than 200,000 ounces a year over the first six years of its 11-year mine life.
Tietto hopes to pour its first gold bar in the final quarter of next year and remains well funded with roughly A$31 million in the bank as of September 30.