DON'T MISS : Talking Africa Podcast – Mozambique's insurgency: After Palma, what comes next?

Mali: African Gold explores debt finance, corporate action options for Kobada

By David Whitehouse
Posted on Wednesday, 10 November 2021 15:38

Gold nuggets are displayed at the PDAC annual conference in Toronto
Gold nuggets on display at the Prospectors and Developers Association of Canada (PDAC) annual conference in Toronto, Ontario, Canada March 1, 2020. REUTERS/Chris Helgren

Canadian junior miner African Gold is exploring debt finance and corporate action options to fund its planned Kobada gold mine in southern Mali, CEO Danny Callow tells The Africa Report.

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.”