AngloGold Ashanti completes sale of entire stake in Mali mining concern
JOHANNESBURG - Mining company AngloGold Ashanti said on Thursday it and joint venture partner IMG had completed the sale of their entire interests in Société d’Exploitation des Mines d’Or de Sadiola (SEMOS) to Allied Gold Corp.
Prior to completing the transaction the two companies each held a 41 percent stake in SEMOS, whose principal asset is the Sadiola mine located in the Kayes region of western Mali, with the remaining 18 percent held by the government.
Before completion of the deal, AngloGold Ashanti and IMG each received a cash dividend of US$8.2 million from SEMOS, while the government got $3.6 million. Afterwards, the companies received $25 million each from Allied Gold Corp and the government.
Within three business days of completion the sellers will receive an additional $1.8 million each.
For AngloGold Ashanti, the sale completes a phase of portfolio rationalisation and optimisation that commenced in 2014.
“Completion of the transaction is in line with our disciplined capital allocation strategy as we have moved to streamline our portfolio,” interim chief executive Christine Ramon said.
On-site surface infrastructure at the Sadiola mine, which commenced production in 1996, includes a 4.9 million tonnes per annum carbon-in-leach gold plant where the ore is eluted and smelted.
As at December 2019, it had a mineral resource of 131.4 million tonnes and an ore reserve of 59.8 million tonnes comprising oxide stockpiles, sulphide stockpiles and yet to be mined ore.
African News Agency