Imara Gold has entered into a $1 million loan facility to address legacy obligations and support the planned restart of operations at its Kilimapesa gold project in Kenya.
The unsecured loan, provided by a European-based strategic investor, carries 100% interest, requiring repayment of $2 million from future project cash flow.
Proceeds are ringfenced for specific stakeholders and statutory payments in Kenya, including settlements with the Moyoi Community, Narok County landowners, outstanding employee payments, and government royalties.
Funds will be held in escrow and released upon achieving certain milestones, primarily an agreement with the Kenyan government on outstanding license issues.
The company is also finalising a mining and processing contract with an industry contractor.
Under the proposed model, the contractor would supply equipment, working capital, and an operational team to run a roughly 50,000-tonne-per-month heap leach operation, with Kilimapesa Gold receiving a royalty on produced gold.
Company executive director Jason Brewer said the moves are "about putting Kilimapesa back onto a structured and sustainable footing," adding that the framework provides a clearer path to restarting mechanised production, subject to regulatory confirmations and mobilisation.
The loan facility is repayable from 50% of the free cash flow generated by the Kilimapesa Gold Mine, starting 30 days after contractor-led production commences.
Mathew Nyaungwa, Editor-In-Chief, Rough & Polished
