AUSTRALIAN-listed gold miner, West African Resources, said it had paid a $25m loan early to investor Taurus Funds Management reducing its overall debt facility to $175m.
West African Resources operates the Sanbrado gold mine in Burkina Faso. The mine, newly commissioned, is slated to produce 217,000 ounces of gold a year over the next five years.
“Sanbrado continues to generate strong cash flows and we are very pleased to be reducing the cost of debt by making this early repayment to Taurus,” said Richard Hyde , executive chairman of West African Resources.
The early repayment was made without any penalties and will provide West African Resources with substantial future cost savings in relation to budgeted interest on the debt facility, the company said.
The firm would focus on accelerate on deleveraging its balance sheet through 2021. The company, which does not hedge its gold, is benefitting from elevated gold prices this year.
Sanbrado produced 40% more gold in the third quarter compared to the second, pouring some 45,400 oz.
In April, West African Resources announced the purchase of the Toega gold deposit from B2Gold and its partner, GAMS-Mining F&I for $45m. Toega is located within 14 kilometres of Sanbrado. “We intend to kick off drilling and feasibility studies in the near future, with the aim of bringing Toega ore into the Sanbrado mine plan within three years,” said Hyde at the time.