Cora Gold (AIM:CORA), the West African focused gold developer, has agreed with Eagle Eye Asset Holdings to extend the window for swapping part of its Sanankoro financing package from stream to debt.
Under the original April term sheet, Eagle Eye's $120m gold stream entitles it to buy 30.44% of life-of-mine gold production at 20% of the prevailing spot price, a share that falls to 15.22% if Cora replaces half the stream with traditional senior debt.
That replacement right had been due to expire on 15 December, but the two parties have now pushed the deadline to the later of 30 October 2027 or six months after Mali grants the project's mining permit.
The change follows what Cora described as positive, ongoing discussions with West African banks, arranged through financial adviser Hannam & Partners, over $60m of senior debt for the project.
Mali's Council of Ministers approved the first interim renewal of the Sanankoro II exploration permit on 21 August, a step Cora said moves it closer to securing the mining rights permit needed for construction.
"Blending traditional senior debt alongside the Stream to fund the development of Sanankoro is expected to enhance the Project's economics", said chief executive Bert Monro, adding that Eagle Eye, Cora's largest shareholder at 29.85% of issued capital, "continues to offer strong support both for the Company and the Project".
Cora's 2025 definitive feasibility study put Sanankoro's post-tax internal rate of return at 98%, with a post-tax net present value of $365m.
News Intelligence what this means for the company
Cora Gold has extended its deadline to swap half of its $120m gold stream into senior debt, pushing the replacement window to October 2027 or six months after Mali grants the mining permit—whichever is later. The extension reflects ongoing negotiations with West African banks for $60m in traditional debt financing and follows Mali's Council of Ministers approval of the Sanankoro II exploration permit renewal, signaling regulatory progress but leaving the company dependent on both debt market access and final permitting.
The extension buys time to secure debt financing that would improve project economics by reducing the stream's royalty burden from 30.44% to 15.22% of life-of-mine gold production. However, the deal remains contingent on Mali granting the mining permit and banks committing to $60m in debt—neither yet secured—leaving execution risk material for a pre-construction developer.
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