Gold producer Thor Explorations has amended and restated the terms of the balance of its senior debt facility held with Africa Finance Corporation (AFC).
On January 31, the parties entered into an agreement amending the previous terms of the project facility.
On April 15, 2020, Thor’s wholly owned subsidiary Segilola Resources and the AFC entered into a $54-million senior debt facility for the construction of the Segilola gold mine, in Nigeria.
The Segilola mine started ramping up production in the fourth quarter of 2021. Full commercial production was achieved at the beginning of last year with a total production of 98 008 oz of gold for the year.
As at December 31, 2022, Segilola had repaid or cancelled $25.6-million of the project facility, reducing the facility outstanding to $28.4-million.
Following Segilola’s successful transition from project to operations, the parties engaged in discussions to revise the project facility with the objective of supporting the company’s growth strategy.
The amendments primarily relate to the removal or relaxation of the more restrictive terms and conditions of the project facility, resulting in more flexibility.
The amended facility removes the project finance cash sweep requirement, releases restrictions on bank accounts and allows for free distributions from Segilola – subject to a 20% distribution sweep to the project facility – as well as releasing the company from restrictions regarding acquisitions, distribution of dividends and certain indebtedness covenants.
In addition, Thor said that the amortisation schedule of the facility had been revised to reduce debt repayments this year, so that free cashflow generated from Segilola can be used to fund growth opportunities, including advancing the company’s Douta project, as well as accelerating exploration and new business opportunities.
The repayment schedule is weighted to 2024.
“The amended facility provides a stable enabling environment for us and is aligned with the next stage of our growth strategy,” Thor president and CEO Segun Lawson says.