Perseus Mining Limited (ASX: PRU), a west-African gold miner and explorer, announced on 26th April 2019, that the company finally received the Exploration Permit for Yaoure Gold Mine, from the government of Cote d’Ivoire. The company’s application of the Exploration Permit was initially expected to be granted on 10th April by the government; however, due to some priority work in the cabinet, the application could not process further.
The company expressed its confidence in the previous announcement and mentioned that Perseus meets all the requirements of the Exploration Permit, and it will be granted to it once the proposal finds its way to the cabinet table of the Cote d’Ivoire government.
The granting of the permit to company’s subsidiary, Perseus Yaoure SARL now makes the company an operator of three gold mines- Edikan Gold Mine and Grumesa in Ghana, and Yaoure Gold Mine in Cote D’Ivoire.
To develop the Yaoure Gold Mine, Perseus secured a corporate Debt facility of US$150 million and accepted Committed Letter of Offer from various international banks.
As per the company, the Yaoure Gold Mine, which is near the Ivorian capital of Yamoussoukro and adjacent to the Koussou hydro-electric power station, is expected to form a core asset for the company’s portfolio, as the operations through the mine are expected to be large-scale and low-cost.
In the announcement, Perseus mentioned that it was the last permit required by the company, to start the development of the mine, and now the Board of the company will convene to commence full-scale project development very shortly.
As per the Chief Executive Officer and Managing Director, Jeff Quartermaine, the receipt of EP signifies a substantial milestone for the company as it successfully places Perseus to target the production of more than 500k ounces of gold, with an AISC of less than US$850 per ounce from various mines in several jurisdictions in West Africa.
Mr Jeff believes that the mine operations will be capable of generating substantial benefits for all the respective stakeholders of the company including the shareholders, host government, and the local communities associated with the project.
In an announcement made by the company on 24th April 2019, Perseus mentioned that of the 143,050,770 Warrants issued by the company to Amara Mining plc, 71,706,803 warrants remained unexercised on the expiry date (shortfall), i.e., 19th April 2019.
The company issued the warrants at an exercise price of $0.44 each, as a part of the consideration under the scheme of agreement between the two counterparties, which took effect from 18th April 2019.
As per the company, it secured an underwriting agreement with Canaccord Genuity Limited and Hartleys Limited, and as which the underwriters will now subscribe for the shortfall on 30th April 2019.
The funding from the Warrants along with the corporate Debt facility of US$150 million coupled with existing and future cash flows, seems to well position the company to fund the development of the Yaoure Gold Mine.
The stock of the company closed the day’s trading at A$0.455 (as on 26th April 2019), up by 3.41% as compared to its previous close.