Nyanzaga Gold Mine Project Gets Funding Proposals USD 100M Greater Than Debt Target

OreCorp (ASX: ORR) has received indicative debt funding proposals for the development of its Nyanzaga Gold Project, with non-binding expressions of interest for more than USD 400 million.

This is well in excess of the USD 300M debt target, OnceCorp explains in its press release.

Nyanzaga is a gold development project in northwest Tanzania with a very large gold resource of 3.07 million ounces at a high grade of 4.03g/t gold.

The expressions of interest that come from European, African, and Tanzanian banks are indicative, non-binding, and subject to completion of formal financing documentation, satisfactory due diligence, and other standard debt financing terms, including satisfactory market conditions and relevant internal approvals.

OreCorp explains that it is continuing discussions with several other financial institutions, including global Export Credit Agencies, as it moves to secure syndicated debt funding for Nyanzaga.

Furthermore, given the recent positive legislative changes in Tanzania with the royalty rate of 6% being reduced to 4% in certain circumstances, the company is further considering how it may take advantage of that to implement other arrangements that may complement, enhance or partially replace the debt financing.

OreCorp Executive Chairman, Matthew Yates commented: “We are pleased with the strong interest we have received to date from banks with respect to financing the project. The expressions of interest received give us further confidence in our ability to deliver a comprehensive financing package that meets our objectives of prudently managing leverage and minimizing dilution to the Company’s existing shareholders. We intend to further advance discussions with banks and other capital providers to ensure we have maximum flexibility to secure financing for the project in the prevailing market conditions.”