US$120m Stream Financing to Fully Fund Sanankoro

Cora Gold Limited (AIM:CORA) has signed a binding term sheet for a US$120 million gold stream with Eagle Eye Asset Holdings Pte. Ltd. (EEA), positioning the financing as sufficient—alongside recent equity proceeds—to fully fund the development of its Sanankoro Gold Project in southern Mali through to production, subject to permitting and other conditions precedent. The stream covers the project's initial capital expenditure of US$124 million, with Cora retaining an option to replace up to US$60 million of the stream with traditional senior debt within 240 days of approvals, potentially halving EEA's entitlement to 15.22% of life-of-mine gold production at 20% of the spot price. This structure promises to accelerate construction once permits are in place, drawing on the September 2025 definitive feasibility study (DFS) that outlined post-tax NPV8 economics of US$221 million at a US$2,750 per ounce gold price, an internal rate of return of 65%, all-in sustaining costs (AISC) of US$1,478 per ounce, and average annual production of 64,000 ounces over the first five years. At a higher gold price of US$3,250 per ounce, those metrics improve to NPV8 of US$319 million and IRR of 88%, with AISC at US$1,568 per ounce. In isolation, the announcement appears transformative, de-risking a project with low strip ratios, soft ore, and simple processing in a region where gold output remains attractive amid sustained high metal prices.

Placing this financing in the context of Cora's prior disclosures reveals a deliberate progression from exploration to fully funded development, building directly on the September 2025 DFS and a recent £15.7 million equity fundraise cornerstoned by EEA itself. That equity raise, which closed prior to this stream term sheet, addressed immediate working capital needs and signalled EEA's deepening commitment as a 29.90% shareholder, having accumulated 228,452,356 ordinary shares. Unlike earlier stages where Cora relied on phased equity injections typical for AIM-listed juniors advancing feasibility-level assets, this stream eliminates the need for additional dilutive raises, aligning with management's stated dual-track strategy of permitting advancement alongside resource expansion across the broader Sanankoro area. Historical announcements, including the DFS release, consistently highlighted permitting as the primary gating item, with ongoing engagement with Mali's government described as constructive—no prior milestones appear missed or revised downward. The related party nature of the transaction, approved as fair and reasonable by independent directors after consultation with nominated adviser Cavendish Capital Markets, underscores EEA's role as a patient, knowledgeable backer rather than an arm's-length lender, a pattern evident since its substantial equity cornerstone.

Financially, the stream materially strengthens Cora's position, with the US$120 million upfront (reducible if debt-substituted) earmarked for mine construction, processing facilities, and allocable working capital, secured by first-ranking pledges over Cora's shares and assets (subordinate to any future senior debt). Cora's market capitalisation stands at GBP 77.3 million, reflecting a valuation that embeds significant leverage to Sanankoro's upside while pricing in Mali's Tier 2 jurisdictional risks, including political stability and gold export logistics. The recent £15.7 million equity infusion provides a cash bridge to stream drawdown, and with no disclosed debt beyond this structure, the funding runway extends effectively to first production, assuming permits materialise as guided. Unlike equity-heavy financings that would dilute shareholders at current levels—potentially adding 20-30% to fully diluted shares outstanding—this non-dilutive stream preserves equity value, with minimum quarterly and annual gold delivery obligations offset by the project's projected output ramp. A residual 2.5% life-of-mine stream kicks in only if the deal fails to complete, a tail risk that incentivises execution but does not undermine the core funding certainty. No recent quarterly cash flow or half-year results were identified beyond the equity raise proceeds; investors should consult Cora's most recent report published on RNS for precise pre-fundraise cash balances and burn rates, though the combined equity-plus-stream package credibly covers the US$124 million capex without evident shortfalls.

Valuation-wise, Cora trades at an implied enterprise value roughly aligned with 0.35 times the DFS base-case post-tax NPV8 of US$221 million (or 0.24 times at the elevated US$3,250 per ounce sensitivity), a discount that factors in permitting execution risk but positions it attractively against peers in the AIM gold developer space targeting West African production. Hummingbird Resources Ltd (AIM:HUM), a similarly scaled AIM-listed gold developer transitioning to production at its Dugbe project in Liberia (comparable Tier 2 jurisdiction), carries an enterprise value implying around 0.5 times its post-tax NPV from recent studies, reflecting parallel funding challenges but with Cora's lower AISC (US$1,478 versus Hummingbird's higher estimates) offering a margin edge at current gold prices above US$3,000 per ounce. Shanta Gold Ltd (AIM:SHG), a Tanzania-based producer with a market cap bracketing Cora's at the lower end and established output from its New Luika mine, trades at approximately 0.4 times forward NPV equivalents, bolstered by operational cash flows but handicapped by higher strip ratios—making Cora's pre-production metrics competitive on an AISC basis once online. Thor Explorations Ltd (AIM:THX), larger at the upper end of the tier with its Segilola mine in Nigeria ramping to 85,000 ounces annually, values at about 0.6 times NPV, a premium Cora could close post-permitting given Sanankoro's first-five-year production profile matching peers' ramps. Against this cohort, Cora appears undervalued on EV/NPV multiples, particularly as the stream locks in funding without the dilution peers like Hummingbird have faced in recent equity topp-ups; however, peers' producing status provides cash flow visibility Cora lacks until permits clear, tempering the discount as justified rather than excessive.

Executionally, this announcement marks a genuine positive pivot from Cora's track record of steady de-risking—DFS delivery on schedule, equity raise upsized via EEA support, and permitting dialogue advancing without reported setbacks—contrasting with peers like Shanta Gold, which has navigated multiple Tanzanian regulatory hurdles, or Hummingbird, delayed by Liberian logistics. No red flags emerge in patterns of milestone rollovers or repackaged news; instead, the related-party stream signals strategic alignment with a major holder committed through equity and now debt-like funding, reducing classic junior risks of funding gaps mid-development. The security package, while comprehensive, includes intercreditor subordination to debt, preserving Cora's optionality to lower the stream percentage and boost economics. Mali's improving investment climate for gold, post-2025 reforms, further contextualises permitting as a credible near-term unlock rather than a perennial overhang.

In sum, the US$120 million stream term sheet represents a transformational development for Cora Gold, fully funding Sanankoro to production and de-risking a project with tier-one economics in a high-gold-price environment, where headline claims hold up robustly against prior guidance and peer benchmarks. The structure's flexibility, non-dilutive nature, and EEA's backing elevate it beyond routine financings, positioning Cora for relative outperformance versus AIM gold peers still grappling with partial funding solutions. Investors should monitor permitting progress as the decisive next catalyst, with no specific timeline disclosed beyond ongoing government engagement—success here could catalyse re-rating toward peer NPV multiples, rendering the positive sentiment not only warranted but conservatively framed.

Key insights

• ●Stream fully funds US$124m capex without dilution, building on Sept 2025 DFS and recent £15.7m equity.
• ●Related-party backer EEA (30% owner) provides committed funding peers like Hummingbird have lacked.
• ●EV/NPV discount to AIM gold peers reflects permitting risk but superior AISC offers upside.

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