25 Jul Toro Gold wins mining concession for Senegal gold project
Toro Gold has been awarded a 15-year mining concession for its Mako gold project in Eastern Senegal and can now finalise the raising of development funding through a combination of US$100 million secured loan facility and a $77 million equity placement.
The money will leave Toro fully-funded to first gold production, targeted for the March quarter of 2018.
Martin Horgan, Toro’s CEO said: “Since establishing the company in 2009, Toro Gold has been active in Senegal and made the greenfields discovery at Mako in 2011.
“In spite of the difficulties faced by the junior mining sector over this period, Toro Gold has been able to progress the project based on its robust forecast returns and the attractiveness of Senegal as a stable and supportive jurisdiction for international investors.”
A definitive feasibility study from July 2015 estimated that an initial development capital expenditure of around $170 million would be required, including a $16 million contingency.
The plan delivers an average of 140,000 ounces per year for five years, followed by plus-two years of stockpiled medium-grade material.
At a $1,150 per ounce gold price, the mine project showed a net present value of $100 million and an internal rate of return of 21%.
Toro’s largest shareholders are Resource Global Fund, Tembo Capital, Macquarie Bank and African Lion, who together own just under two thirds of the company.