Allied Gold has secured a $375 million investment from UAE-based Ambrosia Investment Holdings to expand the Sadiola mine in Mali. The deal includes an acquisition of a 12% stake in Allied for $110 million and supports broader production goals for the company. Allied continues to pursue growth with plans for future expansions and entry into the NYSE.
Allied Gold (TSX: AAUC; OTCQX: AAUCF) has entered a joint venture with Ambrosia Investment Holdings, a UAE-based group, aiming to expand its Sadiola mine in Mali. The investment totals $375 million, with $145 million paid on closing and $230 million later. Additionally, Ambrosia will acquire a 12% stake in Allied for $110 million, which will finance Sadiola’s expansion.
Peter Marrone, chairman and CEO of Allied, described the agreement as a unique collaboration between a Canadian company and Emirati investors in Mali. This deal comes as Allied plans to more than double production from Sadiola by 2028 and amid new demands from Mali’s military junta for Western miners.
The partnership not only supports Allied’s expansion strategies but also aligns with the Muslim-led government’s interests by leveraging UAE investments, noted for exceeding $110 billion in African projects from 2019 to 2023. Allied’s share buy is at a discounted rate of C$3.40, facilitating stronger financial positioning for growth initiatives.
The staged expansion of Sadiola anticipates increasing production from 170,000 ounces in 2023 to between 200,000 and 230,000 ounces annually. The first expansion is set to be followed by a second one targeting 400,000 ounces per annum, with total estimated costs of $65 million and $400 million, respectively.
Additionally, a photovoltaic power generation system will be implemented at Sadiola through a 12-year agreement with UAE-based ATGC, aimed at reducing operational costs and environmental impacts. Meanwhile, the Kurmuk project in Ethiopia is on track for mid-2026 production, targeting 290,000 ounces annually in its initial years and anticipating a mine life exceeding 15 years.
Allied is also looking to expand its market presence by initiating trading on the NYSE, with an expected update on this process by mid-year 2024. The combination of these ventures positions Allied Gold for significant growth and operational improvement moving forward.
In summary, Allied Gold’s strategic partnership with Ambrosia Investment Holdings is pivotal to its growth plans, particularly for the Sadiola mine expansion. The deal showcases the increasing collaboration between Canadian and Emirati businesses in African mining projects and reflects Allied’s robust commitment to enhancing production capabilities and financial flexibility.
Original Source: www.northernminer.com
