Canadian junior Thor Explorations is making steady progress with its Segilola gold project, in Nigeria, announcing on Tuesday that it had signed an engineering, procurement and construction EPC contract and that the $97.6-million project was now 89% funded.
Chinese-headquartered Norinco International will deliver Segilola at a fixed price of $67.5-million for the full delivery of design, engineering, procurement, construction and commissioning of the proposed 650 000 t/y gold ore processing plant within 18 months of the commencement date.
The start of the EPC contract was subject to certain conditions precedent, including financial close of $78-million in financing from Africa Finance Corporation (AFC). Thor reported that the AFC board had approved the financing and the parties were in the process of documenting the financing.
Norinco International has also committed to provide $6.5-million in financing of the EPC contract. As a result of the AFC and Norinco International financings and indicative terms provided by the project’s consumables supplier for a $1.9-million working capital arrangement, the project was now 89% funded, or $86.4-milllion of a total project funding requirement.
Thor also reported that its previously announced private placement to raise $15-million was progressing well and that its successful completion would result in the project being fully funded through construction into operation.
The Segilola openpit project is projected to produce 80 000 oz/y over an initial five-year life-of-mine. The project has probable mineral reserves of three-million tonnes grading 4.2 g/t gold.
A preliminary economic assessment has also been undertaken for a proposed supplemental underground project at Segilola, which could produce 33 000 oz/y.