Allied Gold sells a 50% stake in its Mali mines to Ambrosia Investments for $375 million, with an additional $110 million investment for a 12% stake in Allied. The CEO, Peter Marrone, views this as a positive signal for investor confidence in Mali amid recent mining disputes. The partnership aims to enhance negotiations with the Malian government for better operational terms.
Allied Gold, a miner based in Toronto, has entered into a significant agreement by selling a 50% stake in its Mali mining operations to the Emirati firm, Ambrosia Investments Holdings. For this stake, Ambrosia will pay $375 million and will also invest an additional $110 million to acquire a 12% stake in Allied Gold. This strategic investment is seen as a vote of confidence in Mali, particularly in light of the country’s recent disputes with mining companies.
Mali has faced scrutiny from the mining community after detaining Resolute Mining’s CEO Terry Holohan in November until the company paid $160 million linked to compliance issues. The situation escalated when, in January, Mali embargoed gold stocks at Barrick Gold’s Loulo-Gounkoto mine due to ongoing disagreements over the mining code. Amid these tensions, Allied Gold has adhered to Mali’s 2023 Mining Code, which allows the government to secure equity stakes and implement elevated royalties.
CEO Peter Marrone emphasized that this deal signifies both investor interest and optimism about Mali’s mining sector despite recent adversities. He believes Ambrosia’s involvement will enhance Allied Gold’s negotiating power with the Malian government regarding operational terms in the country. Furthermore, the partnership with an investor from the UAE could streamline dialogue with local authorities.
In Mali, Allied Gold operates the Sadiola mine, which achieves an annual gold production of approximately 200,000 ounces and is currently in expansion. The company is also working on developing the Korali-Sud mine, boosting its presence in the region. Ambrosia, led by Ahmed Amer Al Amry, operates various businesses under the Al Amry Group, showcasing a wide-ranging investment portfolio.
Despite recognizing the challenges in the Malian business environment, where the government claims a significant portion of mining revenues, Marrone remains hopeful for change. He aims for future negotiations to yield agreement on a more favorable revenue distribution that encourages renewed investment into Mali’s mining sector.
Allied Gold’s partnership with Ambrosia Investments represents a strategic move signaling renewed investor confidence in Mali’s mining industry amid challenging circumstances. This development underscores the potential for improved discussions with the Malian government regarding mining operations to foster a more conducive investment atmosphere. As Allied Gold continues its operations and expansions, the collaboration with Ambrosia is expected to strengthen its position in the region.
Original Source: www.miningmx.com
