The Ouagadougou-based banking holding, Coris Bank International (CBI), has loaned CFA37 billion to ‘Societe des Mines de Komana’ (SMK) to fund the development of the Yanfolila gold project in Mali, SMK officials have told APA.SMK is the Malian subsidiary of the English Hummingbird Resources mining company.
CBI is the first banking institution established in Mali to bankroll the construction of a mine in Mali.
The loan will consist of two instalments: the first one, representing 45 percent of the total will be delivered immediately to Hummingbird and the other one (55 percent) will be disbursed in the next five months.
The repayment will be made over a five-year period, with an interest rate of 9 percent.
If it is not repaid in time, the company will benefit from an additional 12-month repayment period.
The potential of the mine (five deposits: Komana East, Komana West, East Kalaya, Gonka and Sanioumale) is estimated at 60 tons of gold.
The Komana mine will produce its first gold bullion starting from the end of 2017.
CBI has already contributed to the financing of some infrastructure in Mali, such as the Sheraton Hotel in Bamako to the tune of CFA15 billion, and the social housing construction program initiated by the Malian President.