Amara Mining discloses proposed $10m IFC investment

20 April 2015 (Last Updated April 20th, 2015 18:30)

UK-based Amara Mining may receive a $10m strategic investment from the International Finance Corporation (IFC) in order to boost its business portfolio.

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UK-based Amara Mining may receive a $10m strategic investment from the International Finance Corporation (IFC) in order to boost its business portfolio.

The proposed funding by the World Bank Group member will be made at a price of 16 pence per share, in-line with the company's $22m fundraiser held in January this year.

The gold mining firm company intends to use the fund to strengthen its financial position as it continues with the 6.8 million ounce Yaoure Gold project in Côte d'Ivoire, West Africa.

The investment would allow the IFC to purchase an interest of nearly 9% in Amara's assets.

Once concluded, the transaction would fully fund Amara up to 2016, giving the firm time to arrange financing up to the project's production stage, with other banks and financial institutions.

"This will ensure that Amara is not made vulnerable by a low cash position at a time when it is important to keep advancing the project."

Amara chairman and CEO John McGloin said: "This will ensure that Amara is not made vulnerable by a low cash position at a time when it is important to keep advancing the project as rapidly as possible.

"The investment also demonstrates Amara's ongoing ability to attract new strategic investors for the long-term financing of Yaoure."

The Yaoure development has a 19% international rate of return at $1,000 per ounce and is breaking even below $800 per ounce.

IFC's investment is subject to its mandatory 30 day disclosure period and execution of final documentation, and is under approval from the board members of both companies.


Image: Amara Mining's Yaoure Gold project in Côte d'Ivoire, West Africa. Photo: courtesy of duron123/FreeDigitalPhotos.net.