West African-focused company Cora Gold has signed a binding term sheet for $120m of gold stream financing with Eagle Eye Asset (EEA) to develop the Sanankoro Gold Project in southern Mali.
The agreement, subject to certain conditions, eliminates the need for additional project funding, allowing Cora Gold to progress with pre-production activities.
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Combined with funds raised through a recent £15.7m ($21.2m) equity financing, led by EEA, the stream fully finances the Sanankoro project, pending permit approval.
Cora retains the option to convert 50% of the stream, equating to $60m, into traditional senior debt within 240 days post-approval to optimise its financial structure.
EEA is set to purchase 30.44% of Sanankoro’s gold output, or 15.22% if the financing is partially replaced, at 20% of the current gold market price.
This funding approach is expected to significantly expedite the project’s construction timeline once permits are in place.
The 2025 definitive feasibility study projected capital expenditure of $124m, maintaining a competitive all-in sustaining cost (AISC) of $1,478/oz due to low strip ratios and straightforward processing methods.
The study outlines a post-tax net present value at 8% (NPV8) of $221m and a post-tax internal rate of return (IRR) of 65%.
The project is expected to produce an average of 64,000oz of gold annually over the first five years.
At a gold price of $3,250/oz, projections indicate a post-tax NPV8 of $319m, a post-tax IRR of 88% and an AISC of $1,568/oz.
EEA currently holds a 29.90% stake in Cora, amounting to 228,452,356 ordinary shares.
Cora CEO Bert Monro said: “This $120m gold stream is a transformational milestone for Cora, significantly de-risking Sanankoro, providing a fully funded development project alongside our existing equity.
“Importantly, the flexibility within the stream structure allows us to optimise the financing package through the introduction of traditional debt, while retaining the stream as a committed fully funded construction solution.”
