#Canada #Toronto #Allied Gold #Ambrosia Investment #Sadiola Mine

Allied Gold Forms Strategic Partnership with Ambrosia Investment Holding

Allied Gold Corporation, a prominent player in the gold mining sector, has announced a strategic partnership with UAE-based Ambrosia Investment Holding. This collaboration is expected to significantly bolster Allied Gold's financial strength and enhance its growth trajectory, primarily through the development of its Sadiola mine in Mali.

Partnership Overview

The newly formed partnership aims to leverage Ambrosia’s extensive regional expertise and understanding of the African market, particularly in Mali, to maximize value from Allied Gold's operations. With Ambrosia’s strategic backing, Allied intends to optimize its operations, pursue new growth strategies, and advance its ambitious expansion plans. The total estimated proceeds from this partnership are projected to exceed $500 million, including an upfront cash payment of approximately $250 million, significantly fortifying Allied's financial base.

One of the partnership’s highlights is the creation of a 50-50 joint venture named Allied Gold ML Corp., which will oversee the Sadiola mine operations. This arrangement will maintain Allied's operational control while ensuring that Ambrosia’s investment stake contributes to the strategic vision for growth and development in the region. The partnership further emphasizes Allied's ongoing commitment to its phased mine expansion strategy, aiming for a production increase at Sadiola particularly through the enriched oxide ore feed.

Financial Implications and Growth Projections

The financial provisions from this deal provide immediate liquidity for Allied Gold, enabling the company to undertake projects such as the Kurmuk project in Ethiopia and enhancements to the Sadiola mine. The anticipated production targets for Kurmuk are impressive, with expectations of reaching 290,000 gold ounces annually in its initial years.

At Sadiola, the phased expansion will propel production from approximately 170,000 ounces in 2023 to a target of between 200,000 and 230,000 ounces per year in the short to medium term. This increase is part of a comprehensive plan that includes a second expansion stage projected for completion by late 2028, aiming for an output level of 400,000 ounces per annum.

Renewable Energy Integration

Moreover, the partnership includes a notable integration of renewable energy solutions to power the Sadiola mine, facilitated by UAE-based ATGC LLC. This innovative move will not only improve operational costs but also reduce the mine's environmental impact, aligning with global moves toward sustainable mining practices.

Strategic Expansion in West Africa

Ambrosia's background in investment and management across multiple sectors equips the partnership with essential resources and networks crucial for navigating the complexities of the West African mining industry. This strategic alliance is projected to open doors to significant opportunities in Mali, thereby enhancing confidence in the regional mining landscape.

Conclusion

The collaboration between Allied Gold and Ambrosia is perceived as a transformative step forward in the regional mining industry, promoting not only operational excellence but also significant environmental stewardship. As Allied Gold navigates this promising partnership, the financial sustainability and operational performance of its mining ventures seem set for substantial improvements, promising value for shareholders and stakeholders alike. Allied’s ambition to emerge as a leading mid-tier gold producer in Africa seems well-supported under this new strategic framework, poised to capitalize on the rich mineral endowments of the region while cultivating strong international partnerships.