JOHANNESBURG, August 31 (ANA) - AngloGold Ashanti and Barrick Gold have agreed to sell their effective 80% stake in the Morila gold mine to Mali Lithium, according to a statement released on Monday.
AngloGold Ashanti said the transaction was consistent with its strategy of rationalising its portfolio to focus capital and other resources on maximising returns to shareholders and other stakeholders.
Under the deal, Mali Lithium will buy Morila Limited, a Jersey-based company equally owned by AngloGold and Barrick. Morila Limited owns 80% of Société des Mines de Morila SA (Morila SA), a Malian registered company in which the government of the West African state has a 20% interest, and which owns the Morila gold mine.
The mine halted mining operations in 2019 and is currently processing only ore stockpiles. It produced 27 000 ounces of gold last year.
Mali Lithium, based in Perth, Western Australia, aims to increase sustainable production at Morila as quickly as possible after acquisition.
Under the new ownership structure, the mine has the potential to utilise existing infrastructure to access additional resources and extend the life of the mine using different planning and evaluation criteria, benefiting Morila’s in-country stakeholders.
AngloGold Ashanti said the consideration payable for the purchase was estimated at between US$22 million and US$27 million, with the final amount to be determined with reference to the closing balance of tax credits in Morila SA.
The consideration will be allocated against the interests that AngloGold Ashanti and Barrick Gold hold in Morila Limited, as well as inter-company loans that Barrick Gold holds against Morila SA.
"AngloGold Ashanti estimates that its share of the net consideration will be approximately US$10 million or less,” the bullion producer said.
It said the closing of the transaction was conditional on, among others, Mali Lithium securing acquisition finance and the deal being acknowledged without objection by Mali's government.
Barrick Gold, the operator of the Morila gold mine, has agreed to work with Mali Lithium on a transition plan to ensure continuity of key mine management personnel and operations.
- African News Agency (ANA), Editing by Stella Mapenzauswa
