Let us know about free updates
Toronto-listed Allied Gold sold a 50% stake in the Mali mine to an Emirati investor. This is a sign of greatest confidence in Mali’s mining sector after months of conflict between the junta and the miners operating there.
Last month, the country’s largest gold mine, the Barrik Gold-owned Lurognkoto project, has been jailed as employees of several foreign mining companies have been enacted and Mali has implemented a new mining code to increase royalties paid to the state. It has been closed.
Emirati Group Ambrosia Investments Holdings on Tuesday invested around $500 million in Allied Gold, with $375 million in 50% stake in Mali’s Allied mine and 12% stake in listed parents said he agreed to pay $110 million to buy. company.
In Mali, Allied owns the Sadiola mine, producing and expanding about 200,000 ounces of gold per year. The company is also developing a new mine in Coralis Sue nearby.
Peter Marrone, chairman and chief executive of Allied Gold, said the deal was a “voting for trust in the assets” and would help fund the expansion of the Sadiola mine. Support from UAE investors will support discussions with the Marian government and improve conditions operating within the country, he added.
The newly established company, Ambrosia, is led by Ahmed Ahma al-Amri. He also runs the Abu Dhabi-based Al Amri Group, from construction to auto parts.
“This transaction should reveal that there are investors who will invest in Mali when others are not,” Malone emphasized that Ambrosia will become a strong ally in discussions with the government.
The Mali military government adopted a new mining code last August and set out a series of negotiations with miners to implement new measures in the fall.
The CEO of Anglo-Australian Gold Miner Resolute Mining was jailed for 10 days during negotiations last year and was released only after the deal was attacked. Terry Holohan resigned from the company this month.
Mali’s biggest miner, Barrick Gold, is still engaged in negotiations with the government, but is approaching the deal, according to those familiar with consultations. Four of the employees remained in prison, and the company declined to comment on the discussion.
Malone admitted that Mali is “still a difficult place to do business,” and said the state’s view on mining revenues is “the highest in the world.” He hoped that it would change with further discussion.
“We hope to reach a better conclusion about the appropriate division that encourages new investments to come to the country,” said Malone, who previously founded and chaired Yamana Gold. .
Allied Gold was one of the first companies to reach an agreement with Junta in September 2024, under which it paid around $110 million and received a new license for the Korali-Sud project.
Allied and Ambrosia have signed a power agreement for one of Ambrosia’s affiliates to power the Sadiola mine using solar and batteries.
