Allied Gold launches C$80M public offering after cancelling UAE investment

Allied Gold (TSX: AAUC) is raising C$80 million through a public offering to fund the planned optimization and growth initiatives at the Sadiola mine in Mali and its Côte D’Ivoire mine complex.Under an agreement with Canaccord Genuity and National Bank Financial as joint bookrunners, Allied will sell 15 million common shares priced at C$5.35 per share — its market open price on Thursday. The stock closed the session at C$5.40 with a market capitalization of C$1.76 billion.The offering comes after the company announced that it will not go ahead with the previously agreed private placement with Ambrosia Investment Holdings, a United Arab Emirates-based investment fund.In February, Allied announced that it would form a partnership with Ambrosia — run by UAE businessman Ahmed Amer Al Amry — on the Sadiola mine, which is currently undergoing a phased expansion. Under the agreed framework, Allied would sell its 80% stake in the mine as well as 12% of the company to Ambrosia for nearly $500 million to help fund this expansion.However, the equity placement part of the agreement — for approximately C$150 million — would not proceed, Allied said in a press release this week, citing factors such as rising prices of gold and its shares since the announcement. However, it added that Ambrosia is willing to continue advanced discussions related to the joint venture.The Sadiola mine in western Mali is expected to have a mine life of 19 years with a long-term production target of 300,000-400,000 oz. annually. The mine reserves are estimated at nearly 7 million oz.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com