The term sheet was agreed with investment firm Lionhead Capital, whose founding partner Paul Quirk is a non-executive director at Cora.
It includes US$6 million of equity, US$6 million of convertible debt and US$10 million of debt financing, and is dependent on Cora completing a positive definitive feasibility study (DFS) by the end of 2021.
Cora's DFS needs to deliver a minimum six years' mine life at 40,000 oz/year gold production, and a 60% internal rate of return (IRR) based on a US$1,400/oz gold price. A scoping study released in January showed 45,000oz/year production and IRR of 84%.
London-based investment firm SPAngel said the agreement "reduces the funding risk and should see Cora re-rate reducing the P/NAV discount applied to companies with development projects".
Cora's CEO Bert Monro said the term sheet was "a very strong endorsement for Sanankoro from an investment group linked with our largest shareholder and a consortium of highly experienced and successful natural resources investors on competitive terms".
Cora plans to begin mine construction at Sanankoro in 2022.