Barrick, AngloGold agree to sell 80% Morila stake to Mali Lithium Ltd

Barrick, AngloGold agree to sell 80% Morila stake to Mali Lithium Ltd

by Pranali Mehta

AngloGold Ashanti Limited and Barrick Gold Corporation have reportedly agreed to sell their 80 per cent stake in Morila gold mine, Mali, to Mali Lithium Limited expecting an approximate revenue generation between $22 million and $27 million. As per sources, the sale is subject to certain conditions comprising the acknowledgement of the deal by the state of Mali, the stakeholder of the remaining 20 per cent interest in Morila.

According to Willem Jacobs, the Chief Operating Officer for Africa and the Middle East, Barrick, the acquisition proposal by Mali Lithium Limited has provided opportunity for a new owner to extend the life of the mine via effective utilization of the existing infrastructure, application of diverse planning and evaluation criteria, and access to additional satellite resources that would consistently favor Morila’s in-country stakeholders.

Having first poured its gold in 2000, Morila’s discovery and development created the foundation for the growth of Randgold Resources, a Barrick legacy company, into one of the leading gold miners at the global level. The mine has produced around 6.9 million ounces of gold, so far, generating revenue of over $2.5 billion in the form of dividends and taxes to its stakeholders. The mine has also facilitated the expansion of Randgold into Africa by bringing about the development of Kibali in the Democratic Republic of Congo and the Loulo-Gounkoto in Mali.

As per a statement by Barrick, the agreement of the present stakeholders regarding the sale of their shares in Morila has provided the mine with the potential to continue under a new ownership structure that would deliver access to additional resources, further enabling Barrick to focus on its strategy that emphasizes the discovery, development, ownership, and operation of Tier One assets. The deal is expected to close before the end of October 2020, state sources.

 

Source Credits:

https://www.globenewswire.com/news-release/2020/08/31/2085843/0/en/Barrick-Sells-Stake-in-Morila-to-Focus-on-Tier-One-Assets.html#:~:text=Barrick%20said%20the%20decision%20of,to%20extend%20the%20life%20of

Pranali Mehta

A chemical engineer by qualification, Pranali Mehta dutifully walked down the slated path and worked in a chemical firm for a year. Her passion for writing however, pushed her into experimenting with the same as a career. With over three years of experience in content writRead more...