Nigeria’s First Commercial Gold Mine Hits Production

SEATTLE (Scrap Monster): The country’s first industrial gold project entered production in Nigeria. This is expected to help the country to reduce its over-dependence on oil earnings. The construction of the mine in the Osun State had begun during the month of March last year.

Thor Explorations and its wholly owned subsidiary, Segilola Resources Operating Limited announced that first gold was being poured from its Segilola mine in southwestern Nigeria on Friday. The plant is expected to ramp up over the next one and a half months. The mine targets to produce approximately 85,000 ounces of gold per annum.

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As per estimates, Canada-based Thor Explorations spent approximately $100 million towards building the mine. The project had received $86 million debt-equity financing packaging in the forms of senior secured credit facility and stream agreement, from Africa Finance Corp. (AFC) - the company’s largest shareholder.

Commenting on the development, Olamilekan Adegbite, Minister of Mines said that Segilola is a testament to the government’s efforts to achieve diversification of the country’s economy by tapping its mining sector assets. The project places Nigeria as the world’s next big frontier mining destination, he added.