Dual-listed gold miner Perseus Mining has been granted approval by its board to start construction of its third gold mine, Yaouré in Côte d’Ivoire.
With a forecast capital cost of US$265 million, Yaouré is expected to become a large scale, low-cost gold mining operation that will form an important part of Perseus’s asset portfolio for many years to come.
The board’s affirmative decision to develop Yaouré follows the recent granting of an Exploitation Permit by the government of Côte d’Ivoire to Perseus’s Ivorian subsidiary, Perseus Yaouré SARL, and confirmation of Perseus’s development funding plan that includes deploying, in part:
- a $150 million revolving credit facility;
- $121 million of existing cash and bullion including US$40 million of cash recently derived from the underwritten exercise of warrants, and strong future cash flows from Perseus’s Edikan and Sissingué gold mines.
The decision to construct is immediate, opening the way for the execution of the engineering and supply contracts between Perseus and the well credentialled engineering company, Lycopodium.
Perseus has collaborated successfully with Lycopodium in the past, most notably on the ahead-of-time, on-budget development of Perseus’s Sissingué gold mine, also in Côte d’Ivoire, that was commissioned in early 2018.
Perseus’s CEO and MD Jeff Quartermaine says:
“When Perseus acquired Amara Mining plc in April 2016, our primary objective was to bring Yaouré into production as soon as practical. With the decision announced today, we have moved one step closer to achieving this goal and in doing so, we are firmly placed on the path to achieving our stated aim of producing more than 500 000 oz of gold at an all-in site cost of less than $850/oz from multiple mines in several jurisdictions in West Africa.”
“A large amount of effort has gone into preparation and planning of the development of Yaouré and with the experience that our team developed from the successful execution of the Sissingué mine development plan, we are confident that Yaouré will also be developed on time and on budget and in the process further establish Perseus’s reputation as a reliable and capable developer and operator of gold mines in West Africa.”