West African-focused gold production and exploration firm Perseus Mining has signed documentation for a $150m revolving cash advance facility that was first announced in April.

The company plans to use the proceeds for general corporate purposes, including the refinancing of $31.5m of existing project loans, as well as funding the development of the Yaouré Gold Mine in Côte d’Ivoire.

The cash advance has been secured from a consortium of three banks, including Australia’s Macquarie Bank, Nedbank from South Africa and Société Générale of France.

The new facility has interest rates of LIBOR plus a 4.25% margin and will vary in line with the company’s leverage ratio.

Perseus will continue to increase the selling price of its gold production in line with its hedging policy of no more than 30% of projected gold production in any given year.

According to the company, its hedge book currently includes deferred fixed forward sales contracts for 54,000oz of gold and spot deferred sales contracts for 221,000oz.

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The average sale price across all contracts is noted to be $1,297 per ounce.

It is forecast that Perseus’s hedge book will result in future gold production being hedged to 30% in fiscal year (FY) 2020, 25% in FY21 and 20% in FY22.

Perseus Mining CEO and managing director Jeff Quartermaine said: “The finalisation of our $150m corporate debt facility locks in the final piece of our funding plan to develop the Yaouré Gold Mine in Côte d’Ivoire, and as such is an important milestone for Perseus.

“In addition to this, we recognise the enormous untapped exploration potential within the Yaouré tenements and with access to funding required to fund exploration from our two operating mines at Edikan and Sissingué, we expect to be able to materially add to the expected life of the Yaouré operation.”

Perseus intends to proceed with the development of the Yaouré gold mine in accordance with its strategic plan of producing more than 500,000oz of gold annually at an all-in site cost of less than $850 per ounce.