Bisha Gold Project / Nevsun Resources

Structure and arrangement of project financing for the Bisha gold-copper mine in Eritrea.


Transaction Amount

Endeavour advised Nevsun Resources (60%) and the Eritrean state mining company (40%) on the financing of the US$350 million Bisha project in Eritrea. The project marked the largest foreign investment in Eritrea, first mine development in Eritrea, first project financing in Eritrea and the first use of the recently-revised German UFK scheme.

Comprehensive advisory role including:
  • Negotiations with the Eritrean Government including advice on a new mining proclamation and mining agreement
  • Negotiations with offtakers
  • Financial modelling, Term Sheet/documentation negotiations and UFK / ECIC negotiations
  • Junior sponsorship
  • Challenging country dynamics and no precedent for any commercial lending to Eritrea
  • No history of mining in Eritrea
  • First application of revised German Government UFK scheme
  • Financing plan designed to address lender concerns as to sponsor size and creditworthiness (Contingency; cost overrun facilities; equity in first; UFK/ECIC-backed credit insurance)
  • Interaction with government to emphasise importance of key investment protections/licenses/requirement for a project financing in international markets
  • Provision of consultant experts to “hand-hold” the lenders: technical, social/environmental, legal, insurance, PRI
  • UFK coordinator dialogue

Key Contact

David Rhodes

Managing Director

George Pyper

Managing Director