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First Taurus funding for Sanbrado arrives

West African Resources’ bid to become a 200,000 ounce per annum gold producer in Burkina Faso took a major step forward last week with the first draw-down of a US$200 million finance facility seeing funding of $75 million deposited into its bank account.
First Taurus funding for Sanbrado arrives First Taurus funding for Sanbrado arrives First Taurus funding for Sanbrado arrives First Taurus funding for Sanbrado arrives First Taurus funding for Sanbrado arrives

On site at Sanbrado in Burkina Faso

Provided by Taurus Funds Management, the debt funding of the build underscores West African's confidence in the quality of Sanbrado, which is aiming to pour first gold in the second half of next year. 

Based on feasibility work completed in mid-2018, Sanbrado has pre-production capex estimated at $185 million, and average annual production for the first five years of 211,000oz at all-in-sustaining-costs of $551/oz.

An updated feasibility assessment is due this month, with the market no doubt keen to see how the project is tracking given some of the difficulties of late faced by gold developers and new producers in the ASX space.

West African Resources raised A$43.2 million in equity in December when it issued new shares priced at 25c each.

Shares in the company closed up 5% at 32.5c Friday, capitalising it at $282 million.