RoxGold (ROG.V) has announced the government of Burkina Faso has approved its Environmental and Social Impact Assessment which was prepared for the Yaramoko permitting process. Even though this approval was expected, it’s always good to see an official confirmation. This was one of the final steps of the permitting process and we expect the final permits to be received next quarter, where after the company will be able to close the debt funding which will very likely be provided by Crédit Suisse and Société Générale.
RoxGold was able to advance its Yaramoko high-grade underground project extremely fast and it looks like it will be Burkina Faso’s next gold producer as both the financing and permitting process seems to be going smoothly. The company’s current market capitalization is approximately C$184M which means the company is trading at 0.7 times the NPV5% as calculated in the official feasibility study.
Additionally, more high-grade gold mineralization has been encountered approximately 1.8 kilomters south of the 55 Zone, as Roxgold intercepted 4.54 meters at more than 1.25 ounces of gold per tonne of ore.
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Disclosure: The author holds no position in Roxgold. Please see our disclaimer for current positions.
