Ambrosia Investment Buys 50% Stake in Sadiola Gold Mine
Canadian based gold producer Allied Gold Corporation on Tuesday said that it has entered into a strategic partnership with the UAE-based investment company Ambrosia Investment Holding, marking a significant move to realise immediate value from its Sadiola mine in Mali, and bolstering its financial strength.
The sale to Ambrosia of 50% of Allied’s interest in Allied Gold ML Corp., for a purchase price including $145 million in cash on closing; and present value of $230 million deferred cash consideration.
The partnership will leverage the regional, national, and continental understanding and influence of Ambrosia, through the UAE in Africa, which will build on Allied’s similar competencies, along with its technical and operational expertise, strong public markets knowledge, financial capacity, and strategic capital allocation capabilities to accelerate the company’s growth initiatives.
The transaction recognises and supports the company’s inherent value proposition and peer-leading growth strategy while endorsing and complementing the Company’s efforts in Mali, particularly the ongoing phased expansion of its generational Sadiola mine.
Furthermore, it is expected to provide key regional expertise and broader market support through a strategic partner with meaningful financial participation in the company.
UAE’s Support to Africa
The UAE has emerged as Africa’s most prominent backer of new business, surpassing China. Emirati companies committed over $110 billion to projects in the continent between 2019 and 2023, including $72 billion in renewable energy.
The Transaction estimated aggregate proceeds of over $500 million, including approximately $250 million in upfront cash consideration, crystalise significant upfront value for Allied’s shareholders and creates a fortress balance sheet, further improving the company’s financial flexibility.
This robust balance sheet underpins Allied’s transformational growth plans, including the development of its Kurmuk project in Ethiopia and the ongoing phased expansion at Sadiola in Mali.
Kurmuk is expected to start production in mid-2026 with a target production level of approximately 290,000 gold ounces per annum over the first 4 years and 240,000 gold ounces per annum over the life of mine at industry-leading All-In Sustaining Costs.
With proven and probable mineral reserves of 2.7 million ounces of gold and significant geological upside, the company is targeting a mine life greater than 15 years driven by an extensive exploration program.
The phased expansion approach at Sadiola is driving production increases from approximately 170,000 ounces in 2023 to a mid-term range between 200,000 and 230,000 ounces per year as result of oxide ore feed and the implementation of the first expansion phase later this year.
This is followed by a further expansion stage expected to be completed in late 2028, which will target a production level of 400,000 gold ounces per annum over the first four years and 300,000 gold ounces per annum over a 19-year mine life based on 7.2 million ounces in Mineral Reserves. The company is advancing metallurgical and engineering studies to confirm the opportunity to increase production over these life-of-mine levels through the optimisation of metallurgical recoveries and a progressive expansion approach.
