• WEST AFRICA | GHANA & CÔTE D’IVOIRE PEE RSEE US MINN INN G ASX/TSX-listed West African gold producer Perseus Mining is ‘steaming ahead’ to deliver on a major growth strategy which will see it transform from a single asset mining business to a multi-asset and multi-jurisdiction mid-tier company producing in the 500 000 ozpa range. “Our actions speak for themselves and are proving our growth plan to be credible and well advanced,” CEO JEFF QUARTERMAINE tells LAURA CORNISH. IN SHORT The next three years will see Perseus Mining double its gold production output as its mine portfolio grows from one to three operations across two countries. P erseus Mining (Perseus) is quickly turning the corner and from early next year will own and operate two gold mines in two different countries – its six year old Edikan mine in Ghana and its new Sissingué mine in Côte d’Ivoire. It is furthermore underway with a feasibility study to bring a third gold mine – Yaouré, also in Côte d’Ivoire – on stream in 2020. “Delivery of this project pipeline, which is well underway, will transform the company and position us to achieve healthy cash margins which hopefully, will positively influence our share price,” Quartermaine states. Investment deal In March the company advised its shareholders of its formal acceptance of Committed Letters of Offer from Macquarie Bank to provide members of the Perseus group with a total of US$60 million of debt finance to fund its growth strategy. The financing includes a $40 million project debt facility that will be used to finance the completion of the development of Sissingué. A second $20 million debt facility has been offered to Perseus’s Ghanaian subsidiary, Perseus Mining (Ghana), and will be used as required to provide general working capital over the next twelve months while production at the mine ramps up and Perseus’s corporate cash resources are applied to fund Sissingué as well as exploration and corporate expenses. Documentation of both debt facilities is well advanced and first funds are expected to be available for draw-down by the end of the March 2017 quarter. Perseus has been advised on this financing by boutique debt advisors Noah’s Rule. “Perseus is in a good place right now. We’ve come through some operational challenges at Edikan over the last six months, but the mine has been cash flow positive since December 2016 and we are back on track and producing according to our internal forecasts. Construction activity at Sissingué is progressing according to plan to deliver first gold early next year and we are half way through a fairly major drilling campaign at Yaouré which has already delivered some interesting results. We remain on track to deliver the results of a feasibility study in the September quarter of this year.” Should activities continue according to plan, Perseus will be operating all three of its mines in 2020 and be ramping up February 2018 The month Perseus will produce first gold from its Sissingué gold project Edikan process plant 32 MINING REVIEW AFRICA | APRIL 2017