The Industrial Development Corporation of South Africa (IDC), a financial development institution, has extended an approved loan program valued at 622 million rand (35 million dollars) to help finance the underground gold mine project TGME of mining company Theta Gold Mines, in the South African province of Mpumalanga.
The agreement, which includes a debt term of seven years from the first drawdown, follows the completion of due diligence by the IDC and allows Theta to proceed with development and construction.
“The debt financing loan agreement demonstrates strong confidence in the project’s economics and alignment with the IDC’s sustainable growth mandate. This is a significant milestone,” said Theta chairman Bill Guy. IDC funding remains subject to the finalization of legal documentation, satisfaction of terms acceptable to the organization, and the completion of Theta’s capital financing contribution to the project, among other conditions.
Theta highlights that its TGME project offers shallow underground deposits close to the surface. A July 2022 feasibility study, covering the first four mines that make up the mining operation — Beta, CDM, Frankfort, and Rietfontein — established a mine life operation in the base case scenario, providing production of 1.24 million ounces of contained gold.
The study, which is being updated, also estimated a capital requirement of approximately 66.4 million dollars to develop the project.
Source: Engineering News
