Aim-listed Katoro Gold has developed a preferred funding strategy for its Blyvoor joint venture (JV) in respect of the Blyvoor gold tailings project, in South Africa, and says it will involve the use of different funding instruments.
The announcement follows as the gold and nickel explorer and developer agreed in July to seek to complete the project financing on or before September 30.
The preferred funding strategy secures the necessary funding, which is sufficient to fund the construction and commissioning of a beneficiation plant and auxiliary operations.
This strategy allowed the company to identify and engage with a select number of preferred funding providers with whom it is currently developing a final funding arrangement for the project.
All these parties have provided formal expressions of interest, with certain milestones having now been agreed to guide a predetermined due diligence process towards a final funding agreement for the project.
The first milestone to be completed is the resource update and upgrade that is currently under way, which will deliver an updated resource and reserve statement, as well as a South African Code for the Reporting of Mineral Asset Valuation, Samval, report for the project.
This is expected by the end of October.
Following an initial due diligence investigation, potential funders have now started with an in-depth due diligence investigation on the project, which can only be completed upon completion of the work referred to above.
Katoro executive chairperson Louis Coetzee says completion of the resource work is now “the next critical milestone”.