AngloGold Ashanti has sold its 41% stake in the Sadiola gold mine in Mali for $52.5m in cash in conjunction with partner Iamgold Corporation which also held 41% of the mine and will also receive $52.5m.
The mine is one of three that AngloGold CEO Kelvin Dushnisky earmarked for disposal following a review of AngloGold Ashanti’s structure and assets after he was appointed CEO in September 2018.
The other mines up for sale are Mponeng plus various surface tailings operations in South Africa and Cerro Vanguardia in Argentina.
The mine has been sold to Allied Gold Corporation which will pay for the acquisition in a number of tranches starting with an amount of $50m – which will be split equally between AngloGold and Iamgold – on the fulfilment or waiver of all conditions precedent and the closing of the transaction.
According to Dushnisky, “Allied Gold has plans to secure the long-term future of Sadiola. “
The transaction is subject to a number of conditions precedent including various approvals from the Government of Mali – which owns the remaining 18% stake in Sadiola.
The Sadiola mine started production in 1996 and as of December 31, 2018 it had mineral resources totalling 7.9m oz of gold and ore reserves totalling 4m oz of gold.