TIDMAMA
RNS Number : 6298K
Amara Mining PLC
20 April 2015
20 April 2015 AIM:AMA
Amara Mining plc
("Amara" or "the Company")
PROPOSED STRATEGIC INVESTMENT BY INTERNATIONAL FINANCE
CORPORATION (IFC)
Amara Mining plc, the AIM-listed West African focused gold
mining company, is pleased to announce a proposed strategic
investment by International Finance Corporation ("IFC"), a member
of the World Bank Group, in Amara.
HIGHLIGHTS:
-- IFC proposes to invest US$10 million in Amara at a price of
16 pence per share, in line with the price of the placing announced
on 21 January 2015
-- The investment will further strengthen Amara's financial
position as it advances the 6.8 million ounce Yaoure Gold Project
in Côte d'Ivoire ("Yaoure")
-- An investment by IFC is a strong endorsement of the technical
strengths, socio-environmental standards and economic potential of
Yaoure and is based upon a site visit and due diligence
investigation
-- Following the proposed investment, Amara will be fully-funded
to the end of 2016, allowing time for discussions with banks and
other financial institutions for the financing of Yaoure to the
production stage
-- The potential investment is consistent with IFC's strategy to
support the further development of Côte d'Ivoire, where it has
already invested in numerous sectors including power, banking, oil
& gas and agribusiness
John McGloin, Chairman and Chief Executive Officer of Amara,
commented:
"The Board has carefully considered the merits of a strategic
investment by IFC and we have concluded that it is in the best
interest of Amara's shareholders. IFC is renowned for conducting
stringent due diligence before making an investment and gaining
this approval acts as a strong endorsement for Yaoure's technical
and socio-environmental standards. I was particularly pleased to
hear that IFC considers Yaoure as a very low risk project and Côte
d'Ivoire as a compelling investment destination.
"Following this proposed investment, Amara's financial position
will be further strengthened and we will be fully funded to the end
of 2016. This will ensure that Amara is not made vulnerable by a
low cash position at a time when it is important to keep advancing
the project as rapidly as possible. The investment also
demonstrates Amara's ongoing ability to attract new strategic
investors for the long term financing of Yaoure. Amara remains on
track to deliver the Pre-Feasibility Study for Yaoure in early Q2
2015 and I look forward to working alongside IFC as we benefit from
the input of their highly experienced team."
Terms of Proposed Investment
IFC has proposed to make an investment of US$10 million in cash
for 41,500,000 new ordinary shares at a price of 16 pence per
share. This share price is in line with the price of the placing to
raise US$22 million, announced on 21 January 2015.
Following this proposed investment, IFC will be interested in
approximately 9% of the issued share capital. Amara will not pay
any brokers fees on this investment. The investment is subject to
the successful completion of IFC's mandatory 30 day disclosure
period, the execution of final documentation, approval by the IFC
Board of Directors and the Board of Amara.
As at 31 March 2015, Amara had US$17.2 million in cash and
liquid assets and was fully funded to deliver a Pre-Feasibility
Study for Yaoure in early Q2 2015 and a Bankable Feasibility Study
in December 2015. This proposed investment will further strengthen
Amara's financial position as the Company continues to advance the
project. Furthermore, following this proposed investment, Amara
will be fully-funded to the end of 2016, by which time it expects
to have commenced construction at Yaoure.
Background on Yaoure Gold Project
Amara delivered a Preliminary Economic Assessment for Yaoure in
Q1 2014, which demonstrated that the project has the potential to
be one of the top gold mines in Africa by production. With average
production of 279,000 ounces per annum over a 10 year mine life and
all-in sustaining costs of US$624 per ounce, the 6.5 million tonnes
per annum scenario delivers an IRR of 33% and an NPV of US$613
million at a gold price of US$1,250 per ounce. Yaoure is one of the
few development projects in West Africa that remains resilient at
low gold prices, with an IRR of 19% at US$1,000 per ounce and
breaking even below US$800 per ounce.
The project is flexible and delivers similarly strong returns
over a range of alternative throughput scenarios. The compelling
economics are driven by the excellent existing infrastructure in
Côte d'Ivoire, with low cost hydro-electric power from the Kossou
dam (5km from site) and a dual carriageway to within 40km of site.
With 85,574 metres of drilling completed in 2014, there is expected
to be strong exploration upside potential on the current NI 43-101
compliant 6.8 million ounce resource base[i].
For more information please contact:
Amara Mining plc
John McGloin, Chairman and Chief Executive
Officer
Pete Gardner, Finance Director
Katharine Sutton, Head of Investor +44 (0)20 7398
Relations 1420
Peel Hunt LLP
(Nominated Adviser & Joint Broker)
Matthew Armitt +44 (0)20 7418
Ross Allister 8900
GMP Securities Europe LLP
(Joint Broker)
Richard Greenfield +44 (0)20 7647
Alex Carse 2800
Farm Street Communications
(Media Relations) +44 (0)7593
Simon Robinson 340 107
About Amara Mining plc
Amara is a gold explorer/developer with assets in West Africa.
The Company is focused on unlocking the value in its development
projects. At Yaoure in Côte d'Ivoire, this will be done by
increasing the confidence in the existing Mineral Resource and
economics at the project as the Company progresses it through to
Pre-Feasibility Study and Bankable Feasibility Study. At Baomahun,
this will be achieved by gaining an improved understanding of the
exploration upside potential and underground opportunity. With its
experience of bringing new mines into production, Amara aims to
further increase its production profile with highly prospective
opportunities across both assets.
About International Finance Corporation
IFC, a member of the World Bank Group, is the largest global
development institution focused exclusively on the private sector.
Working with private enterprises in about 100 countries, IFC uses
its capital, expertise, and influence to help eliminate extreme
poverty and boost shared prosperity. In FY14, IFC provided more
than US$22 billion in financing to improve lives in developing
countries and tackle the most urgent challenges of development. For
more information, visitwww.ifc.org
[i] Effective date of Yaoure's Mineral Resource estimate is 5
January 2015.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCPKODKABKDKQD
Amara (LSE:AMA)
Historical Stock Chart
From Mar 2024 to Apr 2024
Amara (LSE:AMA)
Historical Stock Chart
From Apr 2023 to Apr 2024
