Gold Mining: Segilola Will Begin Operation in 2021 – CEO
Segun Lawson, the Chief Executive and Managing Director of Thor Exploration Limited, a company with focus on early stage gold exploration has confirmed that Segilola project in Osun state will commence operation in 2021.
By its profile, Thor Exploration targets gold exploration located in highly prospective under-explored regions of West Africa.
Speaking about the Segilola project with MarketForces, Lawson said that the gold mining company will employ some 400 workers when production commence in the second quarter of 2021.
Reacting to the company’s recent move to raise $10 million, Lawson said the fund is for further exploration.
“We are still on track for second quarter of 2021 production”, the Thor’s CEO said
MarketForces recalls that the exploration company is currently in the process to raise $10-million.
There was low key involvement of Nigerians in the opportunity the gold mining project will avail interested parties.
However, the Thor’s CEO said some Nigerian investors have made investments in the project which is expected to come on stream next year.
He added that local investors that have keyed into the project are not as much as expected which he attributes to the economic environment in Nigeria.
“We approached some local banks but they were unable to pull through”, the MD told MarketForces.
Meanwhile, the company is doing capital raise in cooperation with certain shareholders, place up to $5-million of previously issued stock via a best-efforts brokered private placement.
MarketForces gathered that the private placement will comprise up to 40-million units with each unit consisting of up to two common shares issued from treasury at a price of 0.18 Canadian dollar to a share and up to one previously issued common share issued at a price of $0.16 Canadian dollar to a share.
The private placement is expected to close on July 2, though it is subject to regulatory approval, including conditional approval of the TSX-V.
With the development of the Segilola gold project, in Nigeria, already fully funded and in construction, and production scheduled for the second quarter of 2021.
The management said it intends to use the net proceeds from the private placement to fund exploration drilling of the Segilola underground resource and identified satellite targets in proximity to the Segilola gold project.
The proceeds will also be used to progress exploration at its prospective Douta gold project, in Senegal, and for general working capital purposes.
In August 2016, the Company completed the acquisition of a 100% interest in the Segilola Gold Project located in Osun State, Nigeria approximately 120 kilometre (km) northeast of Lagos through the acquisition of Segilola Resources Operating Limited.
According to the company, the property comprises mining license ML41 and exploration license EL19066.
It stated that ML41 covers an area of 17.2km2; 1,720ha and is wholly contained within the larger EL19066 covering an area of 135 Cadastral Units (27.0km2; 2,700ha).
The Segilola Gold Project comprises a proposed open pit gold mining project based on an indicated mineral resource defined by a comprehensive drilling program including 157 drill holes totaling over 12,200 metres to define 555,000 ounces of gold at an average grade of 3.8 grams per ton.