Burkina Faso’s mining sector is highly involved in the production of gold. Todays blog talks about Golden Rim Resources on the verge of making the final decision as to whether or not bringing RMB Resources, an establishment part of South Africa’s Rand Merchant Bank as a funding partner for its gold project in Burkina Faso.
It was on Friday when the establishment publicly disclosed that it had signed an indicative term sheet with RMB Resources for RMB Australia Holdings to provide up to A$4-million to fund the completion of the company’s bankable feasibility study (BFS) for the Balogo gold mine project.
The company said that they were extremely pleased to have a mandate in place with such a credible as well as influential financial service group with unique experience in funding mine advancement in Burkina Faso. It’s this kind of support that provides the company with confidence to continue with the bankable feasibility study as we aim towards mine development. This is particularly important during the challenging financial times that the exploration sector is currently experiencing.
A total sum of A$4-million will be provided in two tranches of A$2.5-million and A$1.5-million. The facility, and each tranche, is subject to various conditions, including satisfactory due diligence investigations, which are expected to be completed by mid-December, and RMB Resources’ final credit approval. The facility also includes the provision of unlisted options, where the number of options will be equal to 20% of each tranche amount, divided by the exercise price.
Golden Rim, which also has projects in Cote d’Ivoire and Mali, recently started an environmental-impact assessment as part of the BFS. The environmental study is expected to be completed by the end of June 2014.