Wedoany.com Report-Jun 12, Theta Gold Mines has secured a loan facility agreement with the Industrial Development Corporation of South Africa (IDC) to finance the TGME underground gold mine project in South Africa. The agreement includes indicative funding terms to support the project’s development.

The agreement follows a thorough due diligence process and is subject to standard conditions.

The IDC has committed to a seven-year loan of R622 million ($35 million), featuring an 18-month deferral period for both capital and interest payments. The agreement, finalized after a comprehensive due diligence process, depends on standard conditions, including security terms with co-lenders and the completion of Theta’s equity funding contribution.

The company also renewed Mining Right 83 (MR83) for 13 years, extending until 2038. This right encompasses key mines—Beta, CDM, and Frankfort—within the TGME Underground gold project. Theta Gold Mines’ subsidiary has maintained operations in this region for over 130 years, reflecting its deep-rooted presence.

Theta Gold Mines chairman Bill Guy stated: “The IDC, South Africa’s state-owned institution, has completed a due diligence and approved funding of the project. Its debt funding Loan Facility Agreement in the TGME Underground Gold Project signals strong confidence in the project’s economics and alignment with IDC’s sustainable growth mandate. This is a major funding milestone, with [the] next step finalising legal agreements.”

As an advanced gold development company, Theta is updating its definitive feasibility study (DFS), originally published on July 27, 2022. The revised study, expected in the third quarter of 2025, will reflect updated economics, bolstered by the current gold price of approximately $3,324 per ounce, which suggests improved financial prospects for the project.

In preparation for development, Theta initiated pre-construction activities at the TGME gold processing plant in South Africa last month. This step marks progress toward operationalizing the project, aligning with the company’s goal of advancing sustainable mining in the region.