A subsidiary of Canada-based Kinross Gold Corp. signed a definitive agreement for an eight-year loan of up to US$300 million to develop the Tasiast gold operation in Mauritania.

Tasiast Mauritanie Limited SA signed the loan agreement with World Bank Group member International Finance Corp. and Export Development Canada with the participation of ING Bank and Société Générale.

The loan, which is nonrecourse to Kinross, matures in December 2027 and has a floating interest rate of the London interbank offered rate plus 4.38%. Initial drawdown is expected in early 2020, according to a Dec. 16 news release.

In September, Kinross decided to proceed with the Tasiast 24k project, which is expected to boost throughput at the Tasiast mine to 24,000 tonnes per day for an initial capital expenditure estimate of US$150 million.