About the company
Toro Gold is a private gold exploration and development company focused on Africa. The company’s lead project is the Mako Project, situated in Eastern Senegal. Toro Gold completed a pre-feasibility study for the project in May 2014, indicating a robust 1.4 million ounce reserve project development opportunity. A definitive feasibility study is now underway and due for completion during the first half of 2015.
About the investment
RCF is currently the largest shareholder of Toro Gold at approximately 20% ownership and has been involved with the company since its early stages of development, shortly after the Mako Project discovery was made. Toro Gold is RCF’s first investment located in Senegal, which the firm believes is an up and coming African mining jurisdiction because of its quality resources and the country’s willingness towards new investment and building its economy.
Similar to many development projects around the world in recent times, Toro Gold has experienced a challenging market environment through which RCF has provided its ongoing support as the company has progressed its Mako Project through two additional financings post RCF’s initial investment.
Long term patient investor
To assist Toro Gold in completing its pre-feasibility study for the Mako Project, RCF provided a short-term bridge facility which was converted to equity as part of the company’s financing for its feasibility study. This provided a buffer while the study was concluded and allowed additional time to raise funds for its feasibility study. The bridge also provided capital to undertake a drilling program to support the feasibility study that otherwise would have been delayed by the onset of the wet season.
Despite the constraints of the current market, RCF asserts the fundamentally sound nature of Toro Gold’s projects and believes the company has a strong management team that can deliver positive outcomes. RCF’s first-hand industry experience has also helped to appoint appropriately skilled board members to oversee the explorer’s transition to a development company.