- Barrick Gold (ABX), in conjunction with AngloGold Ashanti, have signed a deal to sell their stake in the Morila gold mine to ASX-listed Mali Lithium
- The two companies will sell their 80 per cent stake to Mali Lithium for an estimated cash consideration of between C$28 million and $32 million
- Société des Mines de Morila SA, which owns the mine, is held 40 per cent by Barrick and 40 per cent by AngloGold, with the remaining 20 per cent held by the state of Mali
- The divestment will allow Barrick to focus on its strategy of discovering, developing and operating tier one assets
- Barrick Gold (ABX) is currently up 0.84 per cent and is trading at $38.58 per share
Barrick Gold (ABX) and AngloGold Ashanti have signed a deal to sell their stake in the Morila gold mine to ASX-listed Mali Lithium.
Under the terms of the deal, Barrick and AngloGold will sell their collective 80 per cent interest to Mali Lithium for a total cash consideration of between C$28 million and $32 million.
The Morila gold mine, which poured its first gold in October 2000, is wholly owned by Société des Mines de Morila SA, in which Barrick and AngloGold each hold a 40 per cent stake. The remaining 20 per cent is owned by the state of Mali.
Known as “Morila the Gorilla” in its heyday, the mine has to date produced roughly 6.9 million ounces of gold and issued more than $3.26 billion to its stakeholders in the form of taxes and dividends.
In 2015, the Morila mine transitioned to a stockpile and tailings treatment facility ahead of a forecast closure in 2021. However, Mali Lithium intends to carry out infill and extension drilling at the mine and, if viable, ramp up production through the restart of mining at satellite deposits.
Willem Jacobs, Chief Operating Officer of Barrick Gold’s African and Middle Eastern operations, said the proposed acquisition by Mali Lithium offers an opportunity for the new owner to extend the life of the mine.
He went on to sat that, by utilising the existing infrastructure and applying different planning and evaluation criteria, Mali Lithium would be able to access additional satellite resources which would continue to benefit stakeholders.
The deal is expected to close by the end of October this year, and will allow Barrick to focus on its strategy of discovering, developing, owning and operating tier one assets.
Barrick Gold (ABX) is currently up 0.84 per cent and is trading at $38.58 per share at 11:09am EDT.