Thor Explorations Ltd (CVE:THX) has reached full funding of its Segilola gold project in Nigeria after closing its previously announced private placement, which netted the company US$4.25 million from the Africa Finance Corporation.
The closing of the latest financing comes just after the Vancouver-based company signed a landmark deal with the Africa Finance Corporation that sees the investment bank provide a US$54 million senior secured credit facility and a US$21 million gold stream prepayment.
In the most recent transaction, Thor issued Africa Finance Corporation just over 28.2 million shares to raise the US$4.25 million.
READ: Thor Explorations hits key milestone as it becomes fully funded to construct Segilola gold mine
Thor also announced it issued nearly 34.8 shares against US$5 million worth of invoices under its engineering, procurement and construction (EPC) schedule.
In total, the company closed US$9.25 million by issuing nearly 63 million shares priced at C$0.20 per share.
The funding milestone means that Segilola, a robust gold project with attractive economics, can begin mine construction.
Segilola boasts a high-grade gold reserve of 3,345,000 tons at 4.2 grams per ton, good for 448,000 ounces in the probable category. A preliminary feasibility study demonstrates robust cash flow payback of under two years, with a post-tax net present value of US$138 million and an internal rate of return of 53%.
Thor also said Wednesday that it will take advantage of the filing extension offered by the Canadian Securities Administrators in light of the coronavirus pandemic. It plans to file its annual financial statements for 2019 by mid-June.
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