AIM-listed gold and nickel exploration and development company Katoro Gold and its joint venture partners have extended the deadline to secure project funding for the Blyvoor gold tailings project.
This deadline extension follows a significant increase in interest from possible funders and an extensive site visit by the JV-management and technical team.
Katoro will look to complete the project financing on or before 30 September 2020, which will be sufficient to fund the construction and commissioning of a beneficiation plant and auxiliary operations at the gold tailings project.
With this revised timeframe the Blyvoor JV partners believe there is sufficient time to duly entertain and properly consider preferred funding options/proposals from the potential funders they have received interest from and are in dialogue with, so as to secure the best possible financing option.
The impact of COVID-19 however remains a harsh reality and it will continue to influence the pace and manner in which we can meet agreed deadlines.
“The strong levels of interest we have received from no less than 14 parties keen to provide project level financing to support the construction and development of the Blyvoor project is a clear indication of its value potential,” says Katoro Gold executive chairman Louis Coetzee.
“Whilst we have always been comfortable alongside our JV partners with regard to our ongoing partnership, we recognised that many investors wanted some clarity as to Katoro’s exclusivity position after the expiry of the June 2020 project level funding deadline caused principally by COVID-19 disruption and the extensive interest from third parties. In response we have agreed a formal extension to 30 September 2020 which we trust will address concerns investors may have with the security of our position in the Blyvoor JV.
“Our primary responsibility remains to ensure we identify the best possible partner(s) and funding option(s) that will best support and realise our JV goal of delivering significant near-term revenue generation within a very aggressive timeline,” Coetzee concludes.