International Finance Corporation (IFC) has agreed to invest C$2.6 million ($2.4 million) in Canadian gold explorer Helio Resources Corporation in support of a Tanzanian gold exploration project.
Helio would use the investment for the advancement of the Saza Makongolosi gold project, in southwest Tanzania and for general corporate working capital.
IFC will also work with the company to ensure that exploration and any subsequent mine development is carried out in an environmentally and socially sustainable manner, said William Bulmer, IFC global head for mining.
The investment of in Helio will result in IFC acquiring 11.5-million units issued by Helio. The units comprise an aggregate of 11.5-million common shares and 5.57-million warrants, each of the warrants entitling the holder to purchase one common share of Helio at an exercise price of C$0.81 a share.
The financing would ultimately result in the IFC holding a 14.8-per cent stake in the issued and outstanding capital of Helio, and up to 20.6 per cent on a partially diluted basis, assuming the exercise of all warrants.
''Helio shares the IFC's commitment to responsible mining exploration and engagement with local communities,'' said Bulmer.