Modern Mining June 2020

Cora Gold secures US$21-million funding for construction of Sanankoro

Cora Gold Limited, the West African focused gold company, has signed a US$21-million mandate and term sheet with investment firm, Lionhead Capital Advisors Proprietary Limited, to fund the future development of its flagship Sanankoro Gold Project in southern Mali. This is conditional on, among other matters, the completion of a definitive feasibility study on the project before the end of 2021. Lionhead is acting as lead inves- tor and arranger on behalf of a consortium of investors including the founders of LionOre Mining

Bert Monro, CEO of Cora Gold.

International Ltd (which was bought by Norilsk Nickel for US$6,3‑billion in 2007), as well as the initial investors in Mantra Resources Limited (which was bought by ROSATOM for AU$1,2-billion in 2010). Paul Quirk, a non-executive director of Cora Gold, is a founding partner and director of Lionhead. The Quirk Family are potential beneficia- ries of trusts that own around 34% of Cora Gold through Brookstone Business Inc and Key Ventures Holding Limited. “The term sheet is fantastic news for Cora and importantly, signifi- cantly de-risks the Sanankoro Gold Project. The US$21-million project financing will fund the Sanankoro Gold Mine based on our Scoping Study economics, following completion of a positive DFS by the end of 2021,” says Bert Monro, CEO of Cora Gold. “This is a very strong endorsement for Sanankoro from an invest- ment group linked with our largest shareholder and a consortium of highly experienced and successful natural resources investors on competitive terms. Sanankoro has the potential to be a highly profitable oxide mine with the scoping study highlighting an aver- age free cash flow of US$24-million per year and a 107% IRR at a US$1 500/oz gold price. “With a supportive shareholder base keen to build production, an existing defined resource with significant scope to expand, and a posi- tive gold price environment, we are extremely excited about Cora’s future. There is a lot of work still to be done and our team is focussed on delivering on it.”  Emmerson shifts focus to Khemisset Following the release of the feasibility study for its 100% owned Khemisset Potash Project located in northern Morocco, Emmerson Plc’s focus now shifts to moving Khemisset towards “shovel ready” status including operational capability build-out, front end engineering and design, detailed design and financing. Permitting process is well underway including stakeholder engage- ment, socio-economic impact assessments and the ESIA. The feasibility study, which confirmed a post-tax NPV 8 of US$1,4-billion and robust financials including over US$300-million per annum in EBITDA, pro- vides the catalyst for engagement with various potential financing groups to commence detailed due diligence. 

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