Theta Gold Mines Ltd secures US $35M for TGME Underground Gold Mine
Theta Gold Mines Ltd has secured a significant funding boost for its TGME Underground Gold Mine in South Africa through a loan facility agreement with the Industrial Development Corporation (IDC), a state-owned financier.
The IDC has approved a R622 million (approximately US$35 million) debt facility for the project. This loan will run over a seven-year period, with the first 18 months deferred from capital and interest payments, offering the company breathing room during the early development phase.
This funding commitment comes after IDC carried out detailed due diligence on the project. However, the disbursement remains subject to standard requirements, including the finalisation of equity funding by Theta and securing acceptable terms with any co-lenders.
TGME Underground Gold Mine
In parallel with this financial milestone, Theta Gold has also secured a 13-year extension for Mining Right 83 (MR83), now valid until 2038. MR83 includes strategic assets within the TGME gold project, namely the Beta, CDM, and Frankfort mines. Theta, through its subsidiary, has a long-standing operational history in the region spanning more than a century.
Theta’s chairman, Bill Guy, emphasized that IDC’s involvement reflects its confidence in the project’s economic potential and aligns with its goal of supporting sustainable industrial growth in South Africa. He noted that IDC has previously backed other successful early-stage ventures, such as Kumba Iron Ore and Alphamin Resources.
The company is currently in the process of updating its Definitive Feasibility Study (DFS), initially released in July 2022, with the revised version anticipated in Q3 2025. Given the current gold price hovering around $3,324 per ounce, the revised DFS is expected to present enhanced economic outcomes. Additionally, pre-construction activities have already commenced at the TGME gold processing plant, marking early physical progress on the ground.
