West African gold developer Tietto Minerals has received a barrage of project funding proposals as it shifts towards the construction phase at its 3.35-million-ounce gold Abujar project in Côte d’Ivoire, Africa. A potential lender is expected to be chosen this month with offers received to date ranging all the way up to a whopping $180 million from overseas institutions.
Tietto has been busily drilling away at its flagship Abujar deposit and commenced planning for construction after hitting the coveted 3 million ounce resource milestone.
Indicative project funding proposals have been primarily received from offshore financial institutions, with non-binding offers coming in from traditional banks, debt funds, streamers and fixed income players ranging between US$120m and US$180m.
The strong response from lenders comes off the back of some stellar results relating to key findings in Tietto’s definitive feasibility study completed on the Abujar gold project in October this year.
Tietto says all offers currently under consideration contain attractive commercial terms consistent with project financing of this nature.
Development at Abujar is already underway with US$8.65m worth of early work planned to include front end engineering and design, site and camp construction and the purchase of an unused semi-autogenous grinding or “SAG” mill.
The strong financier support comes on the back of Tietto Managing Director Caigen Wang ploughing a million dollars of his own money into the company earlier this year after exercising 4,000,000 Tietto options at 25c a share.
First gold is expected to be poured from the project in the fourth quarter of the 2022 calendar year.
Tietto is well-funded, with approximately US$31m sitting in the bank as of the end of September 2021.
The definitive feasibility study for Abujar projects a four million tonne per annum open pit operation that is expected to produce an ounce of gold at an all in sustaining cost of a ridiculously low US$651 per ounce in the first year of production against an all in sustaining cost of US$804 per ounce in the six years to follow.
We are extremely pleased with the quality of the institutions that have indicated their interest to provide the project funds needed to develop the Abujar Gold Project into West Africa’s next gold mine.
With high quality debt funding offers coming in hot and heavy from gold market financiers and a sizeable US$31m of its own cash on hand, Tietto now looks to be in real danger of getting Abujar into production – a milestone that is often elusive for small capped explorers.
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