Allied Gold has partnered with UAE’s Ambrosia Investment for $500 million to expand its mining operations in Africa. This strategic alliance includes acquiring a 50% stake in Mali’s Sadiola mine and a 12% equity interest in Allied. The partnership enhances Allied’s financial flexibility and growth plans for its projects in Mali and Ethiopia, aimed at increasing production significantly.
Allied Gold (TSX: AAUC) has formed a strategic partnership with Ambrosia Investment Holding, a UAE-based investment group, to enhance its mining operations in Africa. This collaboration will leverage regional expertise and market support, as Emirati investments in African projects have exceeded $110 billion since 2019, outpacing those from China. Under this agreement, Ambrosia will acquire 50% of Allied’s gold mining assets in Mali, including an 80% interest in the Sadiola mine, for $375 million, with a joint venture planned.
As part of the deal, Ambrosia will also take a 12% equity stake in Allied Gold for about C$156.6 million. This funding will support the ongoing phased expansion of the Sadiola mine, with the acquisition involving the purchase of around 46 million shares at C$3.40 each. Following the deal, Allied Gold’s market capitalization reached C$1.45 billion, reflective of a promising outlook.
Chairman and CEO Peter Marrone highlighted the uniqueness of this transaction, emphasizing the synergy between a Canadian firm and UAE entrepreneurs in investing in Mali. He noted that Allied’s management possesses significant local experience, enhancing operational competence.
The overall transaction value of $500 million will enable Allied Gold to improve its financial flexibility while advancing its expansion plans for Sadiola and developing the Kurmuk project in Ethiopia. The phased expansion at Sadiola aims to boost annual production from 170,000 ounces in 2023 to between 200,000 and 230,000 ounces in the mid-term.
Future expansions are projected to reach 400,000 ounces annually for the first four years, with a total estimated cost of $465 million for both expansions. Additionally, a photovoltaic power system will be established at Sadiola, enhancing cost efficiency and reducing the environmental impact as part of a long-term supply agreement with UAE-based ATGC.
In Ethiopia, the Kurmuk project is expected to start production in mid-2026, targeting around 290,000 ounces annually over its first four years. The project has 2.7 million ounces in mineral reserves and aims for a mine life exceeding 15 years. Allied supported this development with a C$175 million streaming deal signed with Wheaton Precious Metals.
Allied Gold is also pursuing a dual listing on the New York Stock Exchange, having initiated the application process. CEO Marrone expressed optimism about meeting NYSE criteria by mid-year, as he considers New York a superior market for mining companies compared to Canada.
Allied Gold’s partnership with UAE’s Ambrosia Investment Holding is set to enhance its mining ventures in Africa, specifically in Mali and Ethiopia. The agreement, valued at $500 million, will strengthen Allied’s financial position, facilitating expansions and the development of renewable energy solutions. The move towards a dual listing on the NYSE indicates Allied’s aspirations for increased market visibility and support. Overall, this partnership exemplifies the growing economic ties between UAE and Africa, particularly in the mining sector.
Original Source: www.mining.com
