AngloGold Ashanti and joint venture partner IAMGOLD Corporation have completed the sale of their entire interests in Société d’Exploitation des Mines d’Or de Sadiola (SEMOS) to Allied Gold Corporation. SEMOS’ principal asset is the Sadiola Mine located in the Kayes region of Western Mali.
The disposal is part of AngloGold’s strategy to focus on higher margin, long life assets and completes a portfolio rationalisation that started in 2014. It disposed of its remaining SA gold assets to Harmony Gold Mining last year, leaving it with a high-quality portfolio of 10 operating mines in seven countries and two principal development projects in Colombia.
AngloGold and IAMGOLD each held a 41% interest in Sadiola, with the remaining 18% interest held by the Mali government. Ahead of the transaction, both companies sold an additional 1% stake to the government, giving it a 20% interest, before each selling their remaining 40% to Allied Gold Corp for $25 million (R368 millIon) apiece. Sadiola also paid a $20 million dividend to its shareholders, with AngloGold pocketing $8.2 million. Both companies will also receive about $1.8 million each based on the amount by which Sadiola’s cash balance at the end of April last year was greater than the amount agreed when the deal was first entered just over a year ago. They are also entitled to other deferred considerations linked to production at Sadiola’s sulphides project and may score a further $1.25 million apiece if litigation pending before Malian courts is settled in their favour.
I am pleased we have completed the Transaction with Allied Gold, which has plans to secure the next phase and long-term future of the Sadiola Mine for the further benefit of all of its stakeholders,” AngloGold interim CEO Christine Ramon said.
Main Image: Extractive Industries
