BURKINA FASO – True Gold Mining of Vancouver has secured funding of US$100 million with which to build its Karma gold mine by selling a gold stream to Franco-Nevada Corp. (75%) and Sandstorm Gold (25%). The agreement includes a 18-month option during which time Sandstorm can increase funding by a further US$20 million.
True Gold has agreed to deliver 20,000 oz of gold each year for a period of five years beginning on March 31, 2016. Thereafter, the gold stream will become 6.5% of production from Karma.
The Karma project has secured all permits needed to build the mine, and the True Gold board has approved construction. The first gold pour is expected before the end of 2015.
True Gold is the 90% owner of the Karma project, and the government of Burkina Faso holds the remaining 10%. Project details are posted at TrueGoldMining.com.