Allied Gold says Ambrosia deal a vote of confidence in Mali

ALLIED Gold, a Toronto-lister miner, has sold a 50% stake in its Mali mines to Emirati investor, Ambrosia Investments Holdings.Ambrosia Investments will pay $375m for the stake in the mines a further $110m for 12% in Allied Gold. Citing Allied Gold CEO Peter Marrone, the Financial Times said the investment was a vote of confidence in Mali which has been involved in high profile disputes with mining investors.In November, Mali detained Resolute Mining’s CEO Terry Holohan until the company had agreed to pay $120m to comply with the code. Holohan subsquently resigned from the company. Then in January, Mali embargoed gold stocks at Barrick Gold’s Loulo-Gounkoto mine in a dispute over the mining code that is yet to be resolved.Allied Gold complied with Mali’s 2023 Mining Code last year which entitles the West African country to take a free-carry stake in projects and includes increased royalties.“This deal should make clear that there are investors willing to invest in Mali when others are not,” said Marrone who told the FT Ambrosia would be a powerful ally in discussions with the government. Backing from the United Arab Emirates investor would help the company in its discussions with the Malian government to improve the terms under which it operates in the country, Marrone added.In Mali, Allied owns the Sadiola mine, which produces around 200,000 ounces of gold annually and is undergoing an expansion. The company is also developing a new mine nearby at Korali-Sud.Ambrosia, a newly formed company, is headed by Ahmed Amer Al Amry, who also runs Abu Dhabi-based Al Amry Group, which has a portfolio of businesses ranging from construction to automotive parts, said the FT.Marrone acknowledged Mali was “still a difficult place to do business” and said the state’s take of mining revenues was “among the highest in the world”. He hoped that could change through further discussions. “We can hopefully come to a better conclusion on what is a proper split that will encourage new investment to come into the country,” said Marrone, who previously founded and chaired Yamana Gold.The post Allied Gold says Ambrosia deal a vote of confidence in Mali appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com