Thor signs $67.5m EPC Contract Financing for Segilola Gold Project


Segun Lawson, CEO and President of Thor Explorations and Jianyi Wei, General Manager of the 4th International Engineering Department, Norinco International, exchange signed contracts at the signing ceremony held in Macao, China, recently.

Thor Explorations Ltd has signed a US$78m Engineering, Procurement and Construction (EPC) contract with Norinco International Cooperation Limited for its 100% owned Segilola Gold Project, Nigeria.

A statement from the exploration giant said “the EPC Contract was signed on the 31st May during the 10th International Infrastructure Investment and Construction Forum in Macao, China.”

The EPC Contract has been agreed on a lump sum turnkey basis which provides Thor with a fixed price of US$67.5 million for the full delivery of design, engineering, procurement, construction and commissioning of the proposed 650,000 ton per annum gold ore processing plant within 18 months of the commencement date and includes guarantees for construction schedule and plant performance.

The Signing of the contracts was also witnessed by Engr Frank Odoom, Director of the Mines Inspectorate, Ministry of Mines and Steel Development, Nigeria, and Mr Abdulaziz M. Dankano, Consular General of Nigeria to Hong Kong and Macao.

Thor explained in the statement that the “commencement of the EPC Contract is subject to certain conditions precedent, including financial close of the US$78m Africa Finance Corporation (“AFC”) financing announced in the Company’s press release dated 15 April 2018.”

“In this regard, Thor is also pleased to announce that it has now received AFC Board Approval for the AFC financing. Thor and AFC are now in the process of documenting the financing.”

The US$67.5m EPC Contract price compares directly to the US$65.9m total contract value stated in the Company’s Independent NI 43-101 dated 18 March 2019. The price difference is attributable to improvements in milling and leach circuits, power plant and augmentation of the Project construction team.

As announced in the Company’s press release dated 16 April 2018, Norinco International has also committed to provide US$6.5m in financing of the EPC Contract. As a result of the AFC and Norinco International financings and indicative terms provided by Project’s consumables supplier for a US$1.9m working capital arrangement, the Project is now 89% funded (US$86.4m of a total Project funding requirement of US$97.6m).

On 30 April 2019, Thor announced it had commenced a private placement for the total of US$15m. The private placement is progressing well, and its successful conclusion will result in the Project being fully funded through construction into operation.

Segun Lawson, President and Chief Executive, Thor Explorations Ltd, stated: “We are delighted to have reached another important milestone at the Segilola Gold Project. This is a key contract that fixes the majority of the Project cost, guaranteeing both construction time and plant performance, materially de-risking the delivery of the Project.”

“I would also like to thank the representatives of the Ministry of Mines and Steel Development, Nigeria, who have continued to show their support for the development of the Project and who witnessed the signing of this contract with Norinco International.”

NORINCO International Cooperation Ltd is an incorporated company affiliated to China North Industries Corporation. The company is listed on the Shenzhen Stock Exchange with a market capitalisation of CNY6.3billion (US$930 million).

NORINCO International has built projects in multiple Industrial sectors in Asia, Africa and Europe.

NORINCO International’s experience in Africa and globally uniquely qualifies it to support and successfully implement the Segilola Gold Project in Nigeria.

Thor Explorations Ltd. is a Canadian mineral exploration company engaged in the acquisition, exploration and development of mineral properties located in Nigeria, Senegal and Burkina Faso. Thor holds a 100% interest in the Segilola Gold Project located in Osun State of Nigeria and a 70% interest in the Douta Gold Project located in south-eastern Senegal. Thor also holds a 49% interest in the Bongui and Legue gold permits located in Houndé greenstone belt, south west Burkina Faso. Thor trades on the TSX Venture Exchange under the symbol “THX”.

The Segilola Gold Project The Segilola Gold Project is considered the most advanced gold project in Nigeria. Thor recently completed a DFS on the Segilola Open Pit Reserve and a Preliminary Economic Assessment (“PEA”) on the Segilola Underground Resource.


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