Theta Gold Mines has secured a loan facility agreement and indicative funding terms from the Industrial Development Corporation of South Africa (IDC) for the financing of the TGME underground gold mine project in South Africa.
The IDC has granted a seven-year debt funding loan valued at R622m ($35m) for the project, which includes an initial 18-month period where both capital and interest payments are deferred.
The agreement follows a thorough due diligence process and is subject to standard conditions including satisfactory security terms with co-lenders and completion of the company’s equity funding contribution.
The company has also achieved a 13-year renewal for Mining Right 83 (MR83) until 2038. MR83 covers key mines including Beta, CDM and Frankfort within the TGME Underground gold project.
Theta Gold Mines’ subsidiary has maintained control over this area for more than 130 years, underscoring its long-standing presence in the region.
Theta Gold Mines chairman Bill Guy said: “The IDC, South Africa’s state-owned institution, has completed a due diligence and approved funding of the project. Its debt funding Loan Facility Agreement in the TGME Underground Gold Project signals strong confidence in the project’s economics and alignment with IDC’s sustainable growth mandate.
“This is a major funding milestone, with [the] next step finalising legal agreements. IDC has a proven track record backing early-stage African successes like Kumba Iron Ore and Alphamin Resources.”
Theta Gold Mines, an advanced gold development company, is currently updating its definitive feasibility study (DFS), initially released on 27 July 2022, with the revised version expected in the third quarter of 2025.
With the current gold spot price near $3,324/oz, the updated DFS is expected to reveal substantially improved economics for the project.
Last month, the company started pre-construction at the TGME gold processing plant in South Africa.
