True Gold Mining Inc. has secured financing from Franco-Nevada Corporation (TSX:FNV) and Sandstorm Gold Inc. (TSX:SSL) in an agreement to finance the construction of the Karma mining project in West Africa.
Of the total funding value of US$100 million, 75% will come from Franco-Nevada and 25% from Sandstorm. The agreement will see True Gold delivering 20,000 ounces of gold per year for a total of five years, for which Franco-Nevada and Sandstorm will pay 20% of the spot price.
A feasibility study for the Karma project was announced in December 2013, and first gold pour is expected in 2015.
