Avesoro borrows $5m from AJL as cash flow needs rise

2nd September 2019 By: Marleny Arnoldi - Creamer Media Online Writer

TSX- and Aim-listed gold miner Avesoro Resources has entered into a loan agreement for up to $5-million with majority shareholder Avesoro Jersey Limited (AJL) to help meet the company’s cash flow needs.

As a result of operational issues at the Youga and New Liberty mines, in Burkina Faso and Liberia, respectively, the company’s financing requirement has increased by at least $10-million for the year.

Following this drawdown from AJL, Avesoro can still borrow $42-million from AJL.  

AJL remains committed to supporting the financial needs of Avesoro amid an ongoing takeover bid.

AJL, with its 72.9% shareholding, last month launched a takeover offer to acquire all of the issued and outstanding common shares of Avesoro at £1 apiece. The takeover bid is anticipated to be completed by January 1, 2020.

Meanwhile, new heavy mining equipment has started to arrive at Youga after equipment was damaged by protesters earlier in the year, and dewatering continues at New Liberty following heavy rains that blocked access to the orebody.