The Toroparu project, in Guyana.
Latin American miner Gran Colombia Gold has announced that it will raise $300-million in a notes offering to fund the development of the Toroparu project, in Guyana.
The TSX-listed company on Wednesday announced that it had priced an oversubscribed offering in senior unsecured notes due 2026 at a coupon rate of 6.875%.
The proceeds from the 2026 notes would be used to fund the development of the Guyana operation, repay the remaining gold-linked notes and for general corporate purposes.
Fitch Ratings and S&P Global Ratings have assigned the 2026 notes a rating of B+.
According to the June 2019 preliminary economic assessment, Toroparu will produce 4.5-million ounces of gold over a 24-year mine life. Production will average at 187 500 oz/y over the life-of-mine and 147 600 oz/y over the first ten years of production.
Preproduction capital has been estimated at $378-million, with a $272-million preproduction financing requirement.
The $232-million Phase 2 expansion can be financed from internal cash flow.