(Alliance News) - Cora Gold Ltd on Wednesday said it signed a USD70 million mandate letter to support the construction of a gold project in southern Mali.
The West Africa-focused gold company said Atlantique Finance will be appointed to act as sole adviser in the structuring and mobilisation of a USD70 million medium-term loan in CFA franc to support funding the development of Cora's flagship Sanankoro gold project in south Mali.
Cora said Atlantique Finance is the investment banking and advisory arm of Groupe Banque Atlantique and a member of the Banque Centrale Populaire Group, which Cora said is "the sixth-largest banking group in Africa in terms of equity and the leading banking institution in Morocco".
The appointment of Atlantique Finance is for a minimum term of six months and on an exclusive basis, Cora added.
"This USD70 million debt mandate is building on our fundraising activities earlier this year, where we raised USD3.9 million in equity and USD15.9 million in convertible loan notes," said Cora Chief Executive Officer Bert Monro.
"Once the definitive binding agreements in respect of senior debt are concluded, and such agreements become unconditional, then the convertible loan notes are subject to mandatory conversion."
Atlantique Finance CEO Habib Kone added: "Atlantique Finance and BCP Group have a track record of successfully helping businesses secure debt funding for various purposes including, in 2021, USD122 million to support the construction of a gold mine in Guinea.
"Over the past five years, Atlantique Finance and BCP Group have raised over USD8.50 billion on the banking and capital markets. We are confident in our ability to support Cora through our expertise and breadth of knowledge of the market, and we are available to seek the expected debt financing for the Sanankoro gold project."
Shares in Cora were up 2.2% to 3.68 pence each in London on Wednesday afternoon.
By Greg Rosenvinge, Alliance News reporter
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Cora Gold (CORA)