Managing director Dr Caigen Wang of advanced gold explorer Tietto Minerals (ASX: TIE) has invested $1 million into the company as it progresses on its path toward production at Abujar in Cote d’Ivoire.
Dr Wang exercised 4 million options to acquire 4 million new shares in the company for $1 million.
The options had been granted to Dr Wang at the end of 2017 and were due to expire in December this year.
They came with an exercise price of $0.25 each.
Following the option exercise, Dr Wang’s interest in Tietto stands at 4.29%.
Tietto chairman Francis Harper said Dr Wang’s decision to convert the options and increase his holding in the company demonstrates his commitment to bringing Abujar into production.
Compelling definitive feasibility study
Tietto is targeting first gold production from its Abujar project in West Africa by the end of next year after a “compelling” definitive feasibility study (DFS) was unveiled last week.
Underpinning the DFS is open pit probable ore reserves of 34.4 million tonnes at 1.3 grams per tonne gold for 1.45 million ounces, which is expected to support a 11-year mine life.
Over the first six years of operation, about 1.2Moz of gold is expected to be produced – averaging 200,000oz a year.
Capital expenditure is anticipated at US$200 million (A$272 million).
The study estimates life of mine revenue of US$2.87 billion (A$3.9 billion) to generate post tax cash flow of $970 million.
This is based on average all-in-sustaining costs of US$832/oz (A$1,132/oz) over the mine life and a gold price of US$1,700/oz (A$2,313/oz).
Abujar gold project
Abujar encompasses three contiguous exploration tenements across 1,114 square kilometres.
The project is 30km from the major regional city of Daloa and is only 15km from a tarred road and grid power.
Tietto already has a granted mining licence for the project and secured environmental approval.
The company owns 88% of the project, with the Government of Cote d’Ivoire retaining a 10% free-carried stake and local partners holding the remaining 2%.