Funding talks for Katoro Gold’s mining project in South Africa has resumed amid recent unrest in the Kwazulu-Natal and Gauteng provinces of South Africa would adversely affect their investment.
For Katoro Gold’s Blyvoor Venture (BV) Project, investor and lender negotiations had advanced at pace, with several parties submitting initial funding offers or proposals that were within the broad funding requirements and expectations of the company.
However, following the recent unrest in the Kwazulu-Natal and Gauteng provinces of South Africa, the funding process came to an abrupt standstill with a significant number of the parties on the preferred funder list requesting time to re-assess whether the country risk for their potential investment into the BV has been adversely impacted in any material way.
Some of the potential funders have subsequently indicated that they are satisfied that the latest events in South Africa did not have any adverse impact on their existing risk rating, and negotiations and discussions with these potential funders have since resumed, while the company awaits the final decision from those preferred funding parties who have not yet completed their country risk re-assessment.
Katoro executive chairman Louis Coetzee said: ‘We are satisfied and encouraged with the continued progress on the BV funding process despite recent delays on account of the political unrest in South Africa. ‘The interest and confidence in the merit of the BV as a robust project remains very strong with potential funders. The general view in this regard is in fact that the BV is strong and robust enough to mitigate a substantial part of the perceived country risk in its own right.’