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Cora Gold has signed a US$21 million mandate and term sheet with investment firm, Lionhead Capital Advisors, to fund the future development of its flagship Sanankoro Gold Project in Southern Mali. 

This is conditional on, among other matters, the completion of a DFS on the Project before the end of 2021.

Lionhead is acting as lead investor and arranger on behalf of a consortium of investors including the founders of LionOre Mining International, as well as the initial investors in Mantra Resources. 

Paul Quirk, a non-executive director of Cora, is a founding partner and director of Lionhead. 

The Quirk Family are potential beneficiaries of trusts that own around 34% of Cora Gold through Brookstone Business Inc and Key Ventures Holding.

Bert Monro, CEO of Cora, says:

“The term sheet is fantastic news for Cora and importantly, significantly de-risks the Sanankoro Project.  The US$21 million Project Financing will fund the Sanankoro Mine based on our Scoping Study economics, following completion of a positive DFS by the end of 2021. 

“This is a strong endorsement for Sanankoro from an investment group linked with our largest shareholder and a consortium of highly experienced and successful natural resources investors on competitive terms. 

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“Sanankoro has the potential to be a highly profitable oxide mine with the Scoping Study highlighting an average free cash flow of US$24 million per year and a 107% IRR at a US$1,500/oz gold price.

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“With a supportive shareholder base keen to build production, an existing defined resource with significant scope to expand, and a positive gold price environment, we are extremely excited about Cora’s future. There is a lot of work still to be done and our team is focussed on delivering on it.”

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