Resolute Mining to acquire two Côte d’Ivoire projects for $234m
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The news: Resolute Mining has agreed to buy two mining projects in Côte d’Ivoire from AngloGold Ashanti for USD150 million ($234 million).
The numbers: Under the deal, Resolute will acquire the Doropo and ABC projects from AngloGold, with the transaction comprising USD25 million in upfront cash payment and USD125 million in deferred payments. Of this, USD50 million will be paid 18 months after the deal closes and another USD75 million will be paid 30 months after closing.
It also includes a 2% royalty over the ABC project and a USD10 million contingent payment due on the release of a feasibility study that outlines a mineral reserve exceeding one million ounces of gold. Resolute will also transfer all its exploration permits in neighbouring Guinea to Anglogold.
The context: Resolute said the ABC project is a greenfield exploration project with an inferred mineral resource estimate of around 2.2 million ounces, while Doropo is a feasibility study-stage project with a mineral reserve of around 1.9 million ounces.
“The Doropo and ABC Projects present a compelling opportunity to diversify and increase our production profile in the near term to over 500,000 ounces,” managing director Chris Eger said.
Resolute, which is also listed on the London Stock Exchange, also holds an 80% stake in the Syama gold mine in Mali, with the African country’s government owning the balance 20%.
The source: ASX
