Imara secures $1m loan to settle community, landowner lease payments in Kenya
London-listed Imara Gold has secured a $1-million unsecured loan facility from a strategic European investor to settle legacy stakeholder obligations to the Moyoi community, Narok County landowners and employees of the Kilimapesa gold mine, in Kenya.
Imara will ultimately pay back $2-million on the loan since it incurs 100% interest, through 50% of the free cash flow generated by the mine once contractor-led production starts.
The company is in advanced negotiations for such a contract, which it says will significantly reduce capital and working capital requirements by having the contractor supply equipment and an operations team.
Imara will receive a royalty on produced gold.
Kilimapesa is poised to be a 50 000 t a month heap leach operation.
Imara executive director Jason Brewer says the funding and operating framework is about putting Kilimapesa back onto a structured and sustainable footing.
“We are addressing community, land and statutory matters, aligning with local stakeholders and putting in place a contractor-led operating model. Subject to the required confirmations and mobilisation, this gives the company a clearer path toward restarting mechanised production at Kilimapesa,” he concludes.
