Cora Gold has signed a binding term sheet for a US$120 million gold stream financing package with Eagle Eye Asset Holdings, giving the company a clear funding route for its Sanankoro Gold Project in southern Mali.
The package follows a £15.7 million equity raise, also backed by Eagle Eye. Together, the funding is expected to cover Sanankoro through to first production, subject to permits, final documentation and remaining conditions.
The company now has a defined financing plan, reducing one of the main risks usually attached to junior gold developers.
Under the proposed deal, Eagle Eye will be able to buy 30.44% of gold produced from Sanankoro at 20% of the spot gold price. Cora can replace up to US$60 million of the stream with senior debt within 240 days of approvals. If it does, Eagle Eye’s share of production falls to 15.22%. This gives Cora room to adjust its capital structure and potentially retain more exposure to future production, while still securing development funding now.
Cora Gold Ltd (LON:CORA), together with its subsidiaries, explores for and develops mineral projects in West Africa. The company primarily explores for gold deposits. Its flagship project is the Sanankoro Gold project located in the Yanfolila Gold Belt, Southern Mali.
