Perseus Mining
The site in Cote d'Ivoire where Perseus Mining's Yaoure will be built

Dual-listed gold miner Perseus Mining has secured a US$150 million revolving cash advance facility which will in due course help fund the development of its third gold mine Yaouré in Côte d’Ivoire.

The cash will also be used for general corporate purposes, including the refinancing of S$31.5 million of existing project loans.

The consortium of three international banks that has provided Perseus with the $150 million revolving cash advance facility is comprised of Macquarie Bank from Australia, Nedbank from South Africa and Société Générale of France.

Perseus will continue to hedge the sale price of its gold production in line with its long stated and applied hedging policy of no more than 30% of projected gold production in any given year.

Its hedge book currently includes deferred fixed forward sales contracts for 54 000 oz of gold and spot deferred sales contracts for 221 000 oz of gold. The weighted average sale price across all contracts is currently $1 297/oz.

Based on current forecasts, Perseus’s hedge book will result in future gold production being hedged to 30% in FY20, 25% in FY21 and 20% in FY22.

Perseus’s CEO and MD Jeff Quartermaine says:

“The finalisation of our $150 million corporate debt facility locks in the final piece of our funding plan to develop the Yaouré gold mine in Côte d’Ivoire, and as such is an important milestone for Perseus.”

“Development work at Yaouré has started with the purchase of long-lead items of plant and equipment, the progressive assembly of our development team and some early site works.”

“Full scale activities can now be accelerated safely in the knowledge that all funds required to develop our third gold mine will be available when the conditions precedent to drawdown are satisfied.”

“We are now looking forward to the challenge of firstly, developing Yaouré on time and on budget, and then bringing it into production as our third operating gold mine and achieving our stated aim of producing more than 500 000 oz of gold at an all-in site cost of less than $850/oz.”