On Friday, 27 May Vantage Goldfields announced it had concluded a significant investment by AfroCan Resources Gold which will help see the Lily mine reopened.
The investment is effective from 1 June 2016 for an amount of approximately US$11 million over two months.
AfroCan Resources Gold is a private gold producer and investments company based in Vancouver B.C. pursuing a quick to production, low cash cost business model focusing on high grade small ore bodies in Sub-Saharan Africa and Papua New Guinea.
[quote]The company is in the process of building a portfolio of gold assets and has identified Vantage Goldfields as a strategic component to its plants.
Vantage Goldfields has an excellent production history, having grown production five-fold in the past five years.
A force majeure event in February caused a temporary closure of the Lily mine which required new capital funding for the reopening of the mine. A portion of the AfroCan investment will therefore be allocated to achieving this, while the balance will be used to expand production at Vantage Goldfields’ second project Barbrook mine.
The Lily mine, which is in business rescue, can now proceed to secure additional post commencement funding ensuring that the mine can be back in production as soon as practically possible.
Vantage Goldfields is expected to ramp up production to 50 000 ozpa in the next two years. In 2015 it produced 32 418 oz.