HomeGoldThor Explorations makes first drawdown of senior debt facility for Segilola

Thor Explorations makes first drawdown of senior debt facility for Segilola

TSX-listed Thor Explorations is progressing the construction of its Segilola gold project in Nigeria and its subsidiary Segilola Resources Operating Limited, has completed the first drawdown of project finance from the US$54 million senior debt facility from the Africa Finance Corporation.

Read more: Thor Explorations: Putting Nigeria’s gold reserves on the mining map

Following the closing, Segilola Resources Operating Limited received a disbursement of $21.5 million, representing 40% of the facility.

The drawdown coincides with the arrival of the first shipments of equipment at Lagos port and the shipping of the SAG and Ball mills from China under the lump sum turnkey  engineering, procurement and construction contract with Norinco International, whi9ch it signed in June 2019.

Thor Explorations has a strong and proactive approach to health and safety and recently completed over 500 000 man hours with no lost time injuries.

 “Our longstanding relationship with our partners at the Africa Finance Corporation and Norinco International has enabled us to proceed with the Project on schedule throughout this difficult period,” says Thor Explorations president & CEO Segun Lawson.

“The drawdown of the senior debt facility is an important milestone in the construction schedule which is on-track to pour first gold in Q2 2021. Exploration work is also ongoing around Segilola and at our 70%-owned Douta gold project in south-eastern Senegal and we expect the next set of drill results shortly,” says Lawson.

Read more: Segilola delivers on first mover advantage in Nigeria

Construction at Segilola commenced in February 2020 and first gold production remains on  schedule and on budget for Q2, 2021 despite the COVID-19 pandemic.

This follows the implementation of Covid-19 procedures at the project, established in accordance with industry best practice and the guidelines set out by the Osun State Government and the Ministry of Mines and Steel Development.

Measures have been put in place to monitor and mitigate against the spread of COVID -19 which includes testing, monitoring, and all-round practices of cleanliness and washing to ensure any instances of COVID-19 are instantly monitored and identified.

A handbook has been provided for all personnel and both HSE teams from Thor and Norinco continue to report on this on a daily basis following constant monitoring.