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Thor Explorations secures additional financing commitment for Segilola project in Nigeria

The move extends Norinco International’s partnership with Thor and highlights its commitment to the Segilola gold project, which is considered the most advanced gold project in Nigeria

Segilola gold project
Thor holds a 100% interest in the Segilola gold project in the Osun state of Nigeria

Thor Explorations Ltd. (CVE:THX) has moved yet another step further in realizing the Segilola gold project in Nigeria, as it announced news today that it has received a commitment to fund 10% of the US$65 million EPC Contract for the construction of the project. 

It's been a busy week for Thor, which on Monday announced it had received approval for US$78 million of funding from the Africa Finance Corporation for the construction and ramp-up of the 100%-owned project. 

"Norinco International has supported Thor throughout the Definitive Feasibility Study process and this financial commitment to advancing the Segilola Project demonstrates both Norinco International’s confidence in its ability to deliver the construction of the project at a fixed price under the LSTK EPC Contract and the economic robustness of the underlying project. We are very pleased with the partnership that has developed with Norinco International and look forward to jointly implementing the Segilola project build,” said Segun Lawson, the president and CEO at Thor in a statement. 

WATCH: Thor Explorations Ltd. hits another milestone in its plans to open up Nigeria to gold mining

The Canadian mineral exploration company is focused on exploration and development in West Africa.Thor holds a 100% interest in the Segilola gold project in the Osun state of Nigeria and a 70% interest in the Douta gold project in south-eastern Senegal. Thor also holds a 49% interest in the Bongui and Legue gold permits located in Houndé greenstone belt, south west Burkina Faso.

The move extends Norinco International’s partnership with Thor and highlights its commitment to the Segilola project. The financing is subject to the execution of the LSTK EPC Contract, certain documentation and legal due diligence, which is is expected to be completed in May 2019. Thor's Segilola Gold Project is considered the most advanced gold project in Nigeria.

“Norinco International was selected as the Segilola Project’s preferred EPC Contractor following an in depth review process of alternative procurement, engineering and construction options. Norinco International ranked highly in terms of on the ground delivery capability in Nigeria, fixed contract price and time certainty. They have recently delivered a major copper cobalt project in the Democratic Republic of Congo and Thor is set to benefit from their comprehensive engineering, procurement, logistics and construction capability," added Lawson. 

READ: Thor Explorations reaches milestone as it strikes US$78M financing package for Segilola gold project, Nigeria

Under the terms, the financing has a five year term from the effective date of the EPC contract, with drawdowns of 10% of each amount invoiced under the EPC contract. There is a 21 month moratorium on principal followed by 13 quarterly repayments, with no interest charged until taking over of the plant, under the EPC contract, followed by a yearly interest rate of 8%.

Contact Katie Lewis at [email protected]

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