3 days ago
Canada's Allied Gold could look at options for power supply deal at Mali mine
Canadian miner Allied Gold could look at alternative options for a power supply deal at its Sadiola mine in Mali following a surge in gold prices and the emergence of new opportunities, its CEO told Reuters in an interview on Monday.
The gold miner signed an agreement in February with UAE-based Ambrosia Investment, giving Ambrosia a 50% stake in the mine in return for installing a new power supply system that would have improved the mine's costs. Allied Gold was also supposed to receive $500m (R8.86bn), with approximately $250m (R4.43bn) in upfront cash consideration from Ambrosia.
The deal is yet to close. Allied Gold CEO Peter Marrone said the deal may close in June — but if it does not, it is because other options have become available to the company.
"Our position in the country has changed dramatically along with gold prices," Marrone said. "The world has changed since we put the deal together."
Gold prices have surged nearly 30% this year to date and hit a record $3,500.05 per ounce on April 22.
Ambrosia Investment did not immediately respond to a request for comment.
