AngloGold sells off Morila mine to Firefinch
AngloGold Ashanti and Barrick conclude sale of Morila mine as AngloGold streamlines its portfolio.
AngloGold Ashanti and Barrick Gold concluded the sale of their combined 80 precent interest in Morila Gold to Firefinch for $28.8 million on 10 November. AngloGold Ashanti says the sale is aligned to its strategic objective of streamlining its portfolio to focus its capital allocation on assets with a longer life and lower costs.
Firefinch, formerly Mali Lithium, has retained all the employees of the Morila mine, which had been scheduled for closure in 2021. It intends on extending the mine’s life by accessing satellite resources and adapting the infrastructure of the mine accordingly.
Barrick had been the operator of the mine and says the sale was in line with its policy of selling noncore assets.
Since the Morila mine went into production in 2000, it has produced almost seven million ounces of gold and paid more than $2.5 billion in dividends and taxes.
The net proceeds to AngloGold Ashanti’s account will be $3.6 million, taking into consideration shareholder loans and intercompany payables.
The Mali government will continue to hold the remaining 20 percent stake in the Morila gold mine. The purchase takes place amid political uncertainty in Mali, as the country has recently experienced its second coup in a decade.