PERSEUS Mining’s board gave the widely expected approval for the development of Yaouré, a project in Côte d’Ivoire that will cost $265m to develop and will produce 215,000 ounces of gold a year.
The grant of the exploitation permit by the Ivorian government on April 26 was one the last major hurdles that had to be overcome prior to the company making an investment decision. First production is now pencilled in for December 2020, the company said today.
In addition to cash flow from Perseus’ existing assets – Edikan and Sissingué gold mines – the company will fund Yaouré with $150m from a revolving credit facility and $121m from existing cash and bullion including $40m in warrants.
“When Perseus acquired Amara Mining plc in April 2016, our primary objective was to bring Yaouré into production as soon as practical,” said Jeff Quartermaine, MD of Perseus Mining.
“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 ounces of gold at an all-in site cost of less than $850/oz from multiple mines in several jurisdictions in West Africa,” he added.
“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,” said Quartermaine.
Shares in Perseus Mining are unchanged on a year to date basis.
