AFRICA — NEWS ROUNDUP — Sahelian negotiates production loan

Toronto-based Sahelian Goldfields (SHGI-C) has arranged a US$5-million loan facility to provide working capital for its producing Poura gold mine in Burkina Faso.

The loan facility is being provided by Modern Africa, an equity fund investing in Sub-Saharan business ventures. Participants include Citigroup N.A., Overseas Private Investment Corp. and an affiliate of N.M. Rothschild & Sons. Though still subject to final documentation and necessary approvals, the loan has a 4-year term, is repayable in semi-annual instalments, and can be converted into a direct participating interest in the Poura mine permit.

Sahelian bought the mine from Ashanti Goldfields in the spring of 1997. By that time, the mine was dormant, but it had produced more than 60,000 oz. gold from open pits and underground workings.

Sahelian intends to use some of the loan proceeds to upgrade the fixed assets at the mine.