Shares in Vector Resources (ASX:VEC) have shot up over 9 percent in morning trades, with the company heralding a US$35 million debt funding commitment to progress its African gold operations.
Immediate use of the funds will be put towards finalising the company’s acquisition of the Adidi-Kanga gold project in the Democratic Republic of Congo as well as commence a Definitive Feasibility Study and future mine development activities.
The major cash injection, which will fast-track a potential mining operation at one of the African nation’s most prospective gold deposits, has been offered by Dubai-based Fast Telecom General Trading (FT General), a diversified conglomerate.
FT General holds interests in telecoms and property and has recently expanded its interests into commodities and metals trading.
The funding will be welcome news for shareholders, adding to a $20 debt facility arranged with Medea Future Materials in September this year.
The funding package is expected to be delivered in three tranches, with tranche one consisting of $US5 million in funding to assist legal completion of its acquisition of the Adidi-Kanga project.
Trache 2 will consist of US$10 million to be delivered upon receipt and presentation of the approved work plan and budget for the DFS. The final tranche will be a hefty US$20m to be executed upon finalisation of the DFS and the company making a decision to mine.
Vector Resources is working with FT General’s appointed lawyers in Perth to finalise the formal loan documentation, which is expected to be completed this week.