Cora Gold has taken an important step towards bringing its Sanankoro project in southern Mali into production, with a binding term sheet for a US$120 million gold stream financing package that materially changes the development outlook for the asset.
The agreement is with Eagle Eye Asset Holdings, which is already a meaningful shareholder in the company. Alongside a recent £15.7 million equity raise led by the same backer, the stream financing is intended to leave Sanankoro fully funded through to production, subject to permitting and other closing conditions. It reduces one of the main execution overhangs that typically weighs on emerging producers: the possibility of repeated capital raises before construction begins.
Under the terms, Eagle Eye would be entitled to purchase 30.44% of gold produced from the project at 20% of the prevailing spot price. In exchange, Cora secures a committed source of capital that appears sufficient to cover the initial development requirement outlined in the project’s 2025 definitive feasibility study.
Cora retains the right to replace up to 50% of the stream with a traditional senior debt facility within 240 days of approvals. If exercised, that would reduce the streamed portion of production to 15.22%. This optionality gives management room to refine the final capital structure if debt markets prove supportive, while preserving the stream as a committed fallback.
Cora Gold Ltd (LON:CORA), together with its subsidiaries, explores for and develops mineral projects in West Africa. The company primarily explores for gold deposits. Its flagship project is the Sanankoro Gold project located in the Yanfolila Gold Belt, Southern Mali.
