China’s Zhaojin Mining is among investors who have bought US$61.9 million (A$85m) of new shares in Tietto Minerals to give the ASX-listed junior the funding it needs to develop its proposed US$200m Abujar gold mine in Cote d’Ivoire.
Tietto said last week Taurus Funds Management had agreed to provide up to US$140m of debt funding for Abujar.
With the A$32.8m it has in the bank, Tietto says it’s now well-funded to build its proposed 200,000oz-a-year mine and maintain aggressive exploration to grow resources. The company has an ambitious 2022 projected production start time for Abujar. Its recent definitive feasibility study outlined plans for a four million tonnes per annum openpit mine and CIL processing to produce up to 260,000ozpa at AISC of US$651/oz and 200,000ozpa at $804/oz for the first six years of an initial 11-year mine plan.
Tietto said the new two‐tranche placement at A39c per share included a “material investment by Zhaojin Mining, one of China’s largest gold mining companies”.
“We have commenced a US$8.65m early works program including front end engineering and design, site and camp construction and we have assembled an experienced project build team that can ensure we deliver gold production at Abujar on schedule and on budget,” said Tietto managing director, Dr Caigen Wang.