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Orecorp’s Nyanzaga in Tanzania is WhyAfrica’s Pick Of The Week

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Tanzania continues attracting more and more tourists and foreign investors. Image credit: Leon Louw for WhyAfrica

Orecorp’s Nyanzaga in Tanzania is WhyAfrica’s Pick Of The Week

With the gold bulls cracking the USD2000 per ounce psychological barrier this week and with signs that it will stay put there for a while, new gold mining projects in Africa is in the spotlight again.

By Leon Louw founder of WhyAfrica

This week, WhyAfrica’s Pick of The Week is Australian listed OreCorp’s Nyanzaga Gold Project in Tanzania. Tanzania has seen a flurry of new exploration project coming into fruition in 2023 and the country has become a hotspot for Australian and Canadian based junior mining and exploration companies since President Samia Suluhu Hassan came to power in March 2021.

With a range of mining, energy, agriculture and infrastructure projects in the pipeline, Tanzania is rapidly gaining momentum after the Covid-19 pandemic and the downturn following the Ukraine/Russia crisis.

Its tourism sector has historically been a bedrock of the economy and the country’s diverse offerings continue to attract more and more international tourists. WhyAfrica will visit Tanzania as part of our annual 2023 WhyAfrica Road Trip through Southern and East Africa. OreCorp is one of the exciting new projects in Tanzania that WhyAfrica has been following over the last few years.

OreCorp’s project delivery process (Orecorp’s Nyanzaga in Tanzania is WhyAfrica’s Pick Of The Week)

According to OreCorp’s CEO and Managing Director Henk Diederichs, successful delivery of an optimal financing package is a critical part of the Nyanzaga project’s development process.

“The strong interest received from banks and commodity-based financiers reinforces our confidence we will deliver a comprehensive financing package for the project which meets our objectives of prudently managing leverage and minimising dilution to the company’s existing shareholders,” says Diederichs.

According to Diederichs, OreCorp and its financing advisor, Auramet International, continue to work with a group of major European, African and Tanzanian banks, which provided non- binding expressions of interest in late 2022, to finalise firm commitments.

“Representatives from the banks have visited Nyanzaga site and discussions continue to progress well. OreCorp anticipates firm project funding commitments in the second quarter of this year.

SLR Consulting, a global mining and minerals consulting group based in the United Kingdom, has been appointed as Independent Technical Consultant and Independent Environmental, Social and Governance Consultant on behalf of the banks. SLR will conduct independent technical, environmental, social and governance reviews. These reviews form an integral part of the banks’ due diligence process and will help inform their firm commitments to finance the project. SLR is expected to finalise its reviews in Quarter two of 2023.

Diederichs says that the company is working with a leading Tanzanian bank to canvass and confirm the capacity of local financial institutions to participate in the banking syndicate. This is a requirement under the local content laws prior to the company seeking approval from the Tanzanian Mining Commission to appoint a broader international syndicate of lenders.

The Nyanzaga Gold Project (Orecorp’s Nyanzaga in Tanzania is WhyAfrica’s Pick Of The Week)

The Nyanzaga Gold Project is an advanced development project in the Archaean Greenstones of the Lake Victoria Goldfields of northwest Tanzania. Nyanzaga is situated about 60km southwest of the city of Mwanza, 60km east of the Geita Gold Mine (AngloGold Ashanti) and 30km northeast of the Bulyanhulu Gold Mine (Barrick Gold).

The Project comprises the Special Mining Licence (SML) which covers 23.4km2 and encompasses the Nyanzaga and Kilimani deposits and other exploration prospects. In accordance with the Tanzanian Mining Act, the Government of Tanzania holds a 16% free-carried interest in Sotta Mining Corporation, a subsidiary of OreCorp and the holder of the SML. There are also a number of prospecting licences and applications surrounding the SML.

Orecorp’s Nyanzaga in Tanzania is WhyAfrica’s Pick Of The Week

WhyAfrica will visit north-west Tanzania in late August as part of its annual WhyAfrica Road Trip. The main aim of the WhyAfrica Road trip is to promote Africa as an investment destination and to showcase Africa’s greatest companies and projects to our large global audience, which includes potential investors, venture capitalists and serial entrepreneurs. 

The 45-day overland trip takes place in July and August. This year we plan to visit more than 30 project sites in the Limpopo Province of South Africa, Zimbabwe or Botswana, Zambia, Malawi, Tanzania, and Kenya. Last year we travelled through the Northern Cape Province of South Africa, Namibia, Zambia, Zimbabwe and Botswana and visited nearly 33 project sites, most of them in the mining and exploration sectors.         

To view the photos of last year’s Southern Africa Road Trip click on the gallery link or follow our Instagram account at why.africa https://www.whyafrica.co.za/road-trips/whyafrica-road-trips/. 

Before our journey starts we print magazines that go with us through Africa. These magazines are distributed, together with our sponsors’ marketing material in a marketing pack, at all project sites and offices where we conduct interviews, shoot videos, and take photographs.

During the trip, we try to keep our readers and social media followers (close to 45 000) updated every day. Needless to say that this is not always possible, but last year we had a 98% success rate and only missed 2 days.

After the 45-day long overland trip, we publish an interactive digital magazine complete with video snippets, interviews, and great articles, written as creatively as we can. The Review magazine features some of the best projects and regions we visit and to spice up your reading, the magazine includes video snippets, and great photographs, that we produced while on site and along the way.

WhyAfrica showcases Africa’s great companies and best projects, her people and the continents diverse natural beauty.

Orecorp’s Nyanzaga in Tanzania is WhyAfrica’s Pick Of The Week

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