PROJECT FINANCE

West African confident of debt finance

West African Resources (ASX:WAF) says a preferred financier or syndicate will be appointed before year-end to arrange and underwrite debt project finance facilities for its 90%-owned Sanbrado gold project in Burkina Faso.

Staff reporter
West African Resource's Sanbrado in Burkina Faso has an 11-year mine life with average annual production of 211,000oz of gold

West African Resource's Sanbrado in Burkina Faso has an 11-year mine life with average annual production of 211,000oz of gold

The company said it had received "strong interest" from 14 tier one international resource financiers after requesting debt funding proposals.

It said competitive non-binding offers ranged from US$160-215 million for the project, which is expected to cost $185 million with a 16-month payback at a $1,300 per ounce gold price.

A recent updated feasibility study outlined an 11-year mine life with average annual production of 211,000 ounces of gold and an all-in sustaining cost of $551/oz over the first five years.

West African said it would select a short list of preferred financiers and move to the second stage of the debt financing process, including site visits and due diligence.

The company started the quarter the A$42.6 million (US$30.7 million) in cash.

Its shares were unchanged in morning trade at 29c, capitalising it at $200 million.

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