JOHANNESBURG (miningweekly.com) – ASX-listed gold explorer Perseus Mining has signed a joint mandate letter and indicative letter for a $85-million project loan facility and a minimum 150 000 oz gold hedging facility, for its Ayanfuri gold project, in Ghana.

The facility was expected to provide the total debt funding requirement for the development of the Ayanfuri project, where plant construction was expected to start in the first quarter of 2010, and production was expected from the third quarter of 2011.

“Signing this finance mandate is another important step in the Ayanfuri development process,” said Perseus MD Mark Calderwood.

“Given the escalating gold price, we are pressing hard to get the project up and running quickly. Perseus has already committed to a lump sum contract for the gold process plant development and the purchase of long lead items and, with a healthy cash balance, we will be able to pursue development of the project rapidly in the New Year.”

Calderwood noted that subject to the receipt of government approvals, the company would issue a revised construction timetable by the end of January.

The project loan facility offer was subject to the completion of a due diligence and the requirement to negotiate final commercial terms acceptable to all parties.

“The proposed committed hedging of 150 000 oz represents a modest 7% of the phase one reserve at Ayanfuri, and 17% of the first four years’ expected production, before allowing for the potential phase two production increase. The production target for the first full year of operations is around 230 000 oz,” Calderwood concluded.

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