West African Resources Limited (ASX: WAF) is dually listed on ASX and TSX-V. The company thrives on creating shareholder value through the acquisition and development of gold projects in Burkina Faso, West Africa. Sanbrado Gold Project construction is started by the company, which is fully permitted and funded to production and expected to produce first gold pour in the second half of CY2020.
The company today on 2 April 2019, has announced that it has satisfied the required conditions precedent for its first drawdown under the US$200 million secured finance facility with Taurus Funds Management Pty Ltd. The company has drawn its first US$75 million under the Facility which will be used for the development of the Sanbrado Gold Project in Burkina Faso.
The Managing Director of the company Richard Hyde said that the company is on track to complete the construction of Sanbrado and first gold pour by the third quarter of next year after the first draw-down of US$75,000,000 is completed.
The Chief Investment Officer of Taurus, Mr. Michael Davies stated that they are pleased that they will be working with the board & management of WAF as it brings its first mine into production. Taurus will use its experience in the Sanbrado Gold Project.
As discussed in the MD&A of the company, on 5 December 2018, West African announced a credit approved debt facility for Sanbrado construction with Taurus Funds Management Pty Ltd. The key terms of the debt facility include US$200,000,000 debt facility, with a fixed interest rate of 7.75% per annum on drawn amounts, payable quarterly in arrears. The company will repay quarterly starting on 30 June 2021, and the final repayment will be made on 31 December 2024. The company is eligible in early repayment at any time without penalty. The offtake agreement for 1.25 million ounces of gold under which the Company will receive the prevailing spot gold price subject to an agreed price quotation period. West African Resources retains the right to buy back the remaining balance of the offtake rights at any time on pre-agreed terms.
In December 2018, West African completed a share placement to raise A$43.2 million, before costs. The share placement was completed in a single tranche of 172.7 million new shares at $0.25 per share under West African’s existing 25% placement capacity according to ASX Listing Rules 7.1 and 7.1A. The proceeds raised will be used to fund Sanbrado construction, exploration, and corporate cost.
At the time of writing (3 April 2019 AEST 02:26 PM), the stock of West African Resources Limited is trading at $0.330 (up 1.538% during the days’ trade) with a market capitalization of ~$282.56 million. The stock has generated a YTD return of 32.65% and generated returns of 16.07% and 20.37% over the past six months and one month- period respectively. Its 52-week high price stands at $0.390, and 52-week low price stands at $0.212 with an average trading volume of ~1.64 million.
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