AMN - SENEGAL: Funding secured for gold project

Bassari Resources has received approval of the credit facility requested from Coris Bank International for the Makabingui Gold Project in Senegal. This follows completion of the bank’s due diligence procedures and receipt of independent experts’ reports.

Terms of the Coris Bank International credit financing facility are in line with the original term sheet offered by the Senegal branch of Coris Bank International, agreed to by Bassari. This comprises FCFA 7 billion approximating US$13 million at an annual interest rate of 9%.

Standard security arrangements over assets of Makabingui Gold Operations including plant and equipment, gold stocks in production and in transit and guarantees have been provided by Bassari Resources.

The loan documentation package can now be finalised.

The Makabingui project has been prepared for the start of early development activities upon completion of the project financing package and board approvals.

In 2017, the updated feasibility study confirmed the broad project metrics and economics as first scoped in 2014.

In recent weeks, in conjunction with Australian engineering firm Mincore, Bassari has refined its project execution plan and started to secure the availability of people and resources required to begin project development.

The first phase of project development continues with the preparation of mining-related activities for the start of pit development.

After completion of an infill drilling program and a site visit by international mining consultants, Mining Plus of the UK, the following activities are underway or in preparation:

* Detailed geological interpretation for mine planning and geotechnical design;

* Mine site surveying of the open pit waste dumps, haul road and infrastructure areas; and

* Identification of consultants for the detailed block modelling/pit optimisation, scheduling hydrology/hydrological and geotechnical design and mine contractor tender preparation.

Mining Plus will be involved in these and other geological and mining-related activities that are necessary to take the project into production.

In addition to development activities, the geological team has identified the potential to increase resources adjacent to the planned pits through geophysical surveys and drilling programs. Proposals are being compiled to test these alongside preparing for detailed pit planning and mine development.

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