Thanks to gross proceeds of $20 million in “bought deal” financing,
The company raised the money by issuing 8 million units priced at $2.50 apiece. A unit consists of one share and half a purchase warrant. A full warrant has a 3-year exercise-term and is exercisable at $3.25 per share.
The company has begun construction at Tabakoto, and startup is slated for later this year.
The capital cost before production is pegged at US$40 million. In 2002, a feasibility study estimated a proven and probable reserve of 3.4 million tonnes grading 5.26 grams gold per tonne, based on a gold price of US$350 per oz.
On an annual basis and over five years, Tabakoto is expected to produce 650,000 tonnes averaging 5.45 grams gold per tonne. Cash operating costs will likely range between US$230 and US$250 per oz.
The adjacent Segala project has a proven and probable reserve of 4 million tonnes grading 3 grams gold (or 381,000 contained ounces) and may extend operations at Tabakoto.
Meanwhile, in Eritrea, Nevsun’s Bisha project is undergoing a feasibility study, to be tabled in early 2006. The volcanogenic massive sulphide deposit is said to be rich in precious and base metals.
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