Perseus Mining (ASX:PRU) said that a final investment decision was reached to develop the Nyanzaga gold project in Tanzania, and it committed to invest around $523 million, including contingency, to develop and prepare for the operation of the mine, according to a Monday Australian bourse filing.

The firm has spent around $27.5 million to date to build project team capacity as well as to commence early works, including site establishment, installation of temporary construction accommodation, and bulk earthworks.

The project is expected to produce first gold in the first quarter of 2027, and total gold production over an 11-year, phase one mine life is currently estimated to be 2.01 million ounces.

Capital cost for the plant and site infrastructure is estimated at $472 million, inclusive of $49 million of contingency, and preproduction capital of $51 million.

A second phase of resource definition drilling is being conducted at the project to convert the inferred mineral resources into indicated mineral resources.

Its shares fell 3% in recent trading on Monday.