West Africa-focused gold miner Perseus Mining has locked in $US60 million of debt finance with Macquarie Bank to fund ongoing work at its Sissingue and Edikan mines.
The debt finance will be broken into two components, with one being a larger $US40 million facility that Perth-based Perseus will use to finance the completion of development of Sissingue, which has a capex of $US64 million.
The other, a $US20 million facility, will be used to provide general working capital over the coming year as production at Perseus’s Edikan mine ramps up.
It comes nearly nine months after Perseus completed one of the largest capital raisings by a Western Australia-based company in 2016; it raised $102 million from investors in June by way of a placement and entitlement offer.
Perseus is targeting first gold production at Sissingue in the March 2018 quarter.
“Accessing the funding required to finance our corporate growth strategy, without recourse to the equity capital markets, is a very positive and important step forward for Perseus on its path to transforming into a multi-mine, mid-tier gold mining company,” Perseus managing director Jeff Quartermaine said.
“As well as continuing the strong recent operating performance at Edikan, we can now also look forward to successfully completing the Yaouré definitive feasibility study in the September 2017 quarter and commencing gold production and cash flow from our second producing mine, Sissingue, in early 2018.”
Perseus shares closed 13.1 per cent higher to 34.5 cents each.