OreCorp will raise $474 million to produce gold

The Australian company OreCorp intends to raise this capital to activate the production of its Nyanzaga gold project. This is a titled conclusion of the Definitive Feasibility Study (DFS).

This ambitious plan takes into account the development of the open pit mine, but also the underground mining, the activation of the processing plant and the other infrastructures associated with the project. The file also includes a provision of 36 million dollars. The payback period for this capital is estimated at 3.7 years.

OreCorp says it has already hired Auramet International as an adviser to help it raise the funds: discussions would be started with potential donors including banks and other financial institutions.

The first ingot in 2025

The objective is therefore to accelerate these negotiations in order to produce the first gold bar at Nyanzaga in 2025. According to DFS forecasts, the Nyanzaga project should deliver an average of 234,000 ounces of gold per year over a period of life of 10.7 years. Over this period, approximately 2.5 million additional ounces of gold should be added to Tanzanian gold production.

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It should be noted that the country produced for the financial year 2020/2021 a total of 55.6 tons of gold, an increase compared to the 53.7 tons of the financial year 2019/2020. It is important to remember that Tanzania is among the five largest gold producers in Africa : Ghana, South Africa, Sudan and Mali.

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