Robex Resources has amended its $130 million facility with Sprott, enabling access to $90 million without immediate permit approvals, accelerating development of its Kiniéro Gold Project in Guinea.
- Amended $130M Sprott facility allows $90M drawdown without Mansounia permits
- Immediate $30M drawdown plus $60M held under standard release conditions
- Final $15M contingent on permit receipt or returned by end 2026
- Liquidity Coverage Account to be funded by warrant proceeds and excess cash flow
- First gold production targeted for December 2025
Background on the Financing
Robex Resources, a West African gold producer and developer, initially secured a $130 million senior secured facility with Sprott Resource Lending in March 2025 to fund its Kiniéro Gold Project in Guinea. The facility underpinned the construction phase, with an initial $25 million drawdown completed shortly after closing.
Key Amendments to the Facility Agreement
In a strategic move to enhance funding flexibility, Robex and Sprott have agreed to amend the terms of the facility. Crucially, Robex can now access $90 million of the remaining $105 million without the immediate need for the Mansounia Exploitation Permits or Mining Convention. This includes an immediate $30 million drawdown and $60 million held in a Debt Proceeds Account subject to standard release conditions.
The remaining $15 million remains contingent on the receipt of the permits, with a deadline of December 31, 2026, after which unused funds will revert to Sprott. Additionally, if the permits are not granted by March 31, 2029, the facility term shortens by a year, reflecting the project's regulatory risk.
Liquidity Coverage Account and Financial Safeguards
As part of the amended agreement, Robex will establish a Liquidity Coverage Account (LCA) to bolster financial resilience. The LCA will be funded up to $65 million through warrant proceeds exceeding $11 million (capped at $55 million) and 40% of excess cash flow starting September 2026 until the target balance is reached. Importantly, the LCA funds become accessible only after the Mansounia permits are secured, providing a financial buffer tied to regulatory milestones.
Management Perspective and Project Outlook
Robex’s Managing Director Matt Wilcox highlighted the significance of the amended terms, emphasizing the strengthened partnership with Sprott and the enhanced ability to advance Kiniéro’s development. The company remains focused on delivering first gold production by December 2025, a critical milestone that will validate the project’s viability and underpin future growth.
However, the announcement also underscores the inherent risks tied to permit approvals and geopolitical factors in Guinea. The extensive forward-looking statements reflect Robex’s awareness of these challenges, including operational delays, financing risks, and market volatility.
Bottom Line?
Robex’s amended facility unlocks vital funding ahead of permits, but regulatory hurdles remain a key watchpoint.
Questions in the middle?
- Will Robex secure the Mansounia Exploitation Permits before the 2026 deadline?
- How will potential permit delays impact the targeted December 2025 first gold pour?
- What are the implications if the facility term shortens due to permit non-approval by 2029?