Perseus Mining secures $60 million to bolster growth strategy

Perseus Mining secures $60 million to bolster growth strategy

Perseus Mining (ASX,TSX:PRU) has secured a US$60 million debt finance facility from Macquarie Bank to be used to finance its growth strategy.

The financing package include $40 million which will be used to fund completion of development at the Sissingué gold mine in the Ivory Coast.

The mine’s forecast cost for completion is approximately $64 million which will be made up of Perseus’ internal cash resources and the Macquarie loan.

“Accessing the funding required to finance our corporate growth strategy, without recourse to the equity capital markets, is a very positive and important step forward for Perseus on its path to transforming into a multi-mine, mid-tier gold mining company,” said CEO and managing director Jeff Quartermaine.

First gold production at Sissingué is targeted for the March 2018 quarter and Perseus will publish an updated life of mine plan later this month.

The remaining $20 million of debt funding has been offered to Perseus’s Ghanaian subsidiary as general working capital for the ramp of production at the Edikan mine.

The mine has been cash flow positive since December 2016 with gold production from 1 January to 10 March at 37,789 ounces, up 17% on the previous quarter.

Quartermaine added: “As well as continuing the strong recent operating performance at Edikan, we can now also look forward to successfully completing the Yaouré definitive feasibility study in the September 2017 quarter and commencing gold production and cash flow from our second producing mine, Sissingué, in early 2018.”