Thor Explorations Ltd (CVE:THX) said Tuesday that its subsidiary Segilola Resources Operating Limited (SROL) has received an initial disbursement of US$21.5 million under its senior debt facility from the Africa Finance Corporation.
The total facility amount of US$54 million will be used to fund the Segilola gold project in Nigeria, which is Vancouver-based Thor’s flagship project.
The drawdown coincides with the arrival of the first shipments of equipment at the port of Lagos, Thor told shareholders, as well as the shipment of SAG and ball mills from China under an EPC contract with Norinco International.
Located in Osun State, Segilola is set to become Nigeria’s first large scale gold mine. The project has a 25-year mining licence and an NI-43 101 open pit probable reserve of 405,000 ounces of gold grading 4.2 grams per ton (g/t). The higher confidence indicated resource is 469,000 ounces at 4.7 g/t of gold.
Construction has already started on a 15-month build for the high-grade open pit project, all approvals are in place and first gold production is earmarked for the first quarter of 2021.
“Our longstanding relationship with our partners at the Africa Finance Corporation and Norinco International has enabled us to proceed with the Project on schedule throughout this difficult period,” Thor’s CEO Segun Lawson told shareholders in a statement.
“The drawdown of the senior debt facility is an important milestone in the construction schedule which is on-track to pour first gold in Q2 2021. Exploration work is also ongoing around Segilola and at our Douta Project in Senegal and we expect the next set of drill results shortly.”
The company also noted that it had recently completed over 500,000 labour hours with no lost-time injuries.
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