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Thor Explorations Ltd. Signs Investment Committee Approved Term Sheet for US$78 Million Financing With Africa Finance Corporation for the Construction of the Segilola Gold Project
NOT FOR DISSEMINATION IN THE UNITED STATES OR FORDISTRIBUTION TO U.S. WIRE SERVICES VANCOUVER, British Columbia, April 15, 2019 (GLOBE NEWSWIRE) -- Thor Explora
About this update from Thor Explorations Ltd.
[{"type":"text","content":" NOT FOR DISSEMINATION IN THE UNITED STATES OR FORDISTRIBUTION TO U.S. WIRE SERVICES VANCOUVER, British Columbia, April 15, 2019 (GLOBE NEWSWIRE) -- Thor Explorations Ltd. (TSX VENTURE: THX) (“Thor” or the “Company”) is pleased to announce it has received investment committee approval from and executed an agreed term sheet with the Africa Finance Corporation (“AFC”) for a US$78 million financing package for the construction and ramp-up of its 100% owned Segilola Gold Project in Nigeria (the “Segilola Project”). This follows the completion of the Project Definitive Feasibility Study (“DFS”) announced on 4th February 2019. The financing is subject to mutually satisfactory documentation, AFC Board approval, completion of due diligence and other customary conditions precedent which are expected to be completed in May 2019. Highlights Total funding of US$78 million US$54 million senior secured credit facility, a US$9 million gold stream prepayment and a US$15 million equity investment from AFC Introduction of a new strategic investor into Thor - AFC, a pan-African multilateral development finance institution Thor to proceed with Turnkey Engineering Procurement and Construction (“EPC”) contract finalisation and start of construction works with first production targeted within 18 months of EPC commencement For the Company to be fully funded to production, including financing costs, cost overrun capacity, general corporate purposes and other exploration activities during the construction period, the Company will also be seeking to raise an additional of US$18m from debt or equity sources. Segun Lawson, President & CEO of Thor Explorations Ltd, stated: \"This is an extremely significant milestone for Thor and for the mining sector of Nigeria. Our DFS demonstrated the robustness of the Segilola Gold Project and now we are pleased and looking forward to partnering with AFC as both a lender and a long term shareholder of Thor. Our vision for the Segilola Project is aligned and we look forward to successfully implementing this landmark project in Nigeria” Senior secured credit facility (the “Facility”): Five year term from Financial Close 21 Month Moratorium after financial close on Principal Interest rate of LIBOR + 9.0% Issue of 17,602,941 ordinary shares Issued to AFC (subject to regulatory approvals) The Facility is secured aga...