PERTH (miningweekly.com) – Dual-listed West African Resources has secured a two-year $5-million convertible loan facility from Macquarie Bank to complete its feasibility study of the Mankarga 5 heap leach gold project, in Burkina Faso.
The facility would be drawn down fully by way of a single cash advance, and would be subject to further title and ownership due diligence and documentation, which would be completed by the end of November.
West African pointed out on Wednesday that the facility included the provision of 40.6-million unlisted options, at an exercise price of 14c each. Any funds received through the conversion of these options would be applied against the outstanding facility amount, reducing the debt to Macquarie.
The options would expire three years from the date of issue.
West African MD Richard Hyde told shareholders that Macquarie’s support in developing the Mankarga 5 heap leach starter project was a milestone for the company.
“It strongly endorses both the quality of the Mankarga 5 project, and the company achieving its aim of being a 50 000 oz/y gold producer by the end of 2015.”
West African was hoping to complete the project finance arrangements for the construction and development of Mankarga 5 in the first quarter of 2015, while first production from the project was expected by the last quarter of 2015.