TSX-V-listed Thor Explorations has executed its definitive documents with the Africa Finance Corporation (AFC) to secure all the funding needed for the Segilola gold project, in Nigeria, and has made the final investment decision to proceed with construction.
Construction at the project will continue following the implementation of Covid-19 procedures at the project in accordance with industry best practice and the guidelines as set out by the Osun state government and the Ministry of Mines and Steel Development in Nigeria.
First gold production is scheduled for the second quarter of 2021.
The executed definitive documents include a subscription agreement with the AFC regarding a private placement of common shares of the company to AFC of C$5.6-million through the issuance of 28.2-million common shares at C$0.20 a share.
Thor also announced the proposed issuance of 34.7-million common shares against $5-million of invoices under the engineering, procurement and construction schedule.
In aggregate, the company expects to close an anticipated total of C$13-million through the issuance of 62.9-million common shares at C$0.20 a share.
Tranche 2’s shares will be subject to a hold period of four months and one day after the day of such issuance.
The company, through its wholly-owned subsidiary Segilola Resources Operating, has signed definitive documents with the AFC on a $21-million stream agreement, and signed definitive documentation for the provision of $54-million in senior secured credit facility funding.
The facility represents the balance of the funding required for the construction of the project.
In connection with the facility, Thor will issue 33.3-million common shares to AFC at a deemed price of C$0.20 a share in consideration of the risk taken by AFC.
Thor intends to use the net proceeds from the AFC funding as the major component of the capital cost and working capital requirements to construct the project. The total funding requirement to build the project is about $98-million.