REG - Thor Explorations Ld - AMENDMENT AND RESCHEDULING OF SENIOR DEBT FACILITY

Thor ExplorationsAnnouncement

02/02/2023 07:00

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RNS Number : 6594O  Thor Explorations Ltd  02 February 2023

NEWS RELEASE

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR

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FOR IMMEDIATE RELEASE
 
TSXV: THX

February 02,
2023

 

Vancouver, British Columbia

 

AMENDMENT AND RESCHEDULING OF SENIOR DEBT FACILITY

 

Thor Explorations Ltd. (TSX VENTURE: THX) ("Thor" or the "Company") is pleased
to announce that is has amended and restated the terms of the balance of its
senior debt facility held with Africa Finance Corporation (the "AFC").

 

Background

On 15 April 2020, the Company's wholly owned subsidiary Segilola Resources
Operating Limited ("SROL") and the AFC (together the "Parties") entered into a
USD54 million senior debt facility (the "Project Facility") for the
construction of the Segilola gold mine located in Osun State, Nigeria.

The Segilola gold mine started ramping up production in Q4 2021. Full
commercial production was achieved at the beginning of 2022 with total annual
production of 98,008 ounces ("oz") of gold in the full year 2022; the first
full calendar year of operations. As at 31 December 2022, SROL had repaid or
cancelled USD25.6 million of the Project Facility, reducing the facility
outstanding to USD28.4 million.

Following SROL's successful transition from project to operations, the Parties
engaged in discussions to revise the Project Facility with the objective of
supporting the growth strategy of the Company.

Amendment and Restatement Agreement

On 31 January 2023, the Parties entered into an agreement amending the terms
of the Project Facility. The amendments primarily relate to the removal or
relaxation of the more restrictive terms and conditions of the Project
Facility, resulting in a more flexible facility.

The amended facility removes the project finance cash sweep requirement,
releases restrictions on bank accounts and allows for free distributions from
SROL (subject to a 20% distribution sweep to the Project Facility), as well as
releasing the Company from restrictions regarding acquisitions, distribution
of dividends and certain indebtedness covenants.

In addition, the amortization schedule of the facility has been re-scheduled
to reduce debt repayments in 2023, so that free cashflow generated from
Segilola can be used to fund growth opportunities, including advancing the
Company's Douta project, accelerating exploration and new business
opportunities. The repayment schedule is weighted to 2024.

Updated AFC Project Facility repayment schedule

Segun Lawson, President & CEO, stated:

"We are pleased to have restated our senior debt facility which frees up
Segilola's cash flow for the Company to continue to implement its growth
strategy and deliver value to its shareholders. I would like to thank the AFC
for their continued strong support of Thor. The amended facility provides a
stable enabling environment for us and is aligned with the next stage of our
growth strategy, and I look forward to updating the market on our progress in
the coming weeks."

 

Further details can be found on the Company's website: www.thorexpl.com
(http://www.thorexpl.com)

 

About Thor Explorations

 

Thor Explorations Ltd. is a mineral exploration company engaged in the
acquisition, exploration, development and production of mineral properties
located in Nigeria, Senegal and Burkina Faso. Thor Explorations holds a 100%
interest in the Segilola Gold Project located in Osun State, Nigeria and has a
70% economic interest in the Douta Gold Project located in south-eastern
Senegal. Thor Explorations trades on AIM and the TSX Venture Exchange under
the symbol "THX".

 

THOR EXPLORATIONS LTD.

Segun Lawson

President & CEO

 

For further information please contact:

 

Investor Relations

Ibu Lawson

Email: ibu.lawson@thorexpl.com

 

Canaccord Genuity (Nominated Adviser & Broker)

Henry Fitzgerald-O'Connor / James Asensio / Thomas Diehl

 

Tel: +44 (0) 20 7523 8000

 

Hannam & Partners (Broker)

Andrew Chubb / Matt Hasson / Jay Ashfield / Franck Nganou

 

Tel: +44 (0) 20 7907 8500

 

Fig House Communications (Investor Relations)

Tel: +1 416 822 6483

Email: investor.relations@thorexpl.com

 

BlytheRay (Financial PR)

Tim Blythe / Megan Ray / Said Izagaren

Tel: +44 207 138 3203

 

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