Investing.com — Cora Gold Ltd (LON:) shares jumped 17.8% Friday after the company announced it secured a $120 million gold stream financing agreement with Eagle Eye Asset Holdings to fully fund its Sanankoro Gold Project in Mali.
The binding term sheet with EEA removes future funding requirements for the project, allowing the company to advance pre-production activities. Combined with a recent £15.7 million equity fundraise cornerstoned by EEA, the stream fully funds Sanankoro to production, subject to permitting.
Under the agreement, EEA is entitled to purchase 30.44% of gold produced at Sanankoro at a price equal to 20% of the prevailing spot gold price for the life of the mine. Cora retains the right to replace 50% of the stream, or $60 million, with traditional senior debt for up to 240 days following approvals.
The company’s September 2025 Definitive Feasibility Study outlined initial development capital expenditure of $124 million at a $2,750 per ounce gold price. The study projected all-in sustaining costs of $1,478 per ounce, post-tax NPV8 of $221 million, and post-tax IRR of 65%. The project is expected to produce an average of 64,000 ounces annually for the first five years.
At a $3,250 per ounce gold price, the post-tax NPV8 increases to $319 million with a post-tax IRR of 88%.
EEA currently holds 228,452,356 ordinary shares of Cora, representing 29.90% of the company’s issued share capital. The transaction constitutes a related party transaction under AIM Rules.
The stream financing is conditional upon long-form documentation being agreed and executed by the parties, along with any regulatory approvals identified during due diligence. Cora reported that permitting continues to progress with ongoing engagement with the Government of Mali.