The November resumption of talks between Tanzania’s government and multinational corporates, on plans to develop the country’s $30bn liquefied ... natural gas (LNG) reserves, has triggered optimism that progress may finally be in sight.
The company needs $165m to produce the first gold from the mine, Callow says. He aims to raise about $110m in debt and the rest in equity, and is in discussions with banks as well as mezzanine-debt providers.
Another possible avenue is investment from a gold producer looking for ready-to-build projects, Callow says. According to him, “corporate discussions are happening” with producers who could add the project to their portfolio or take an equity stake. A corporate transaction would take away the need for fundraising, he says.
African Gold is currently debt-free and has not promised any future royalties, Callow says. Its Kobada project is fully permitted. “A corporate transaction would be straightforward and simple.”