ASX-listed unhedged gold producer West African Resources has completed a US$25 million voluntary early repayment of its finance facility with Taurus Funds Management.
The repayment to Taurus was foreshadowed in the company’s September 2020 quarterly report and reduces its outstanding debt facility from US$200 to $175 million.
The early repayment was made without any penalties and will provide the company with substantial future cost savings in relation to budgeted interest on the debt facility.
The company will continue to focus on accelerating the repayment of the debt facility throughout 2021.
Executive chairman Richard Hyde says Sanbrado continues to generate strong cash flows and the company is pleased to be reducing the cost of debt by making this early repayment to Taurus.
Read more about the Sanbrado project
The company poured first gold at its Sanbrado gold project in Burkina Faso on Wednesday 18 March 2020. Sanbrado is expected to produce more than 300 000 oz gold in its first year of production and an average of 217 000 oz a year in its first five years at AISC of less than $600/oz.
Sanbrado has an initial 10-year mine life, including 6.5 years of underground mining. Strong early cashflow and a rapid payback of capital at $1 300/oz gold.