(Ecofin Agency) - Teranga Gold announced last May 7, it has received $70 million under the $200 million agreement signed in March 2018 with Taurus Funds to advance projects in Burkina Faso.

The resource is part of the first tranche worth $165 million which was to be used to develop the Wahgnion Gold Project and repay all of the Company’s debt totaling $15 million.

The company also indicated that debt towards Société Générale has been paid and at Wahgnion, all critical long-lead equipment has been guaranteed and key contracts have been awarded. In addition, earthworks are underway and installation for the plant foundation are expected to begin this month.

“The next key pillar in our growth strategy is Wahgnion. With first drawdown (ed: $70 million), we are now well on our way to building our second mine, with first gold pour expected by the end of 2019.  Wahgnion is expected to increase companywide production by 50% in 2020 to between 300,000 and 350,000 ounces of gold,” CEO Richard Young (photo) said.

Let’s recall that the company also operates Sabodala gold project in Senegal.