AngloGold to Sell Entire Stake in Mali's Sadiola Gold Mine

SEATTLE (Scrap Monster): South African mining giant AngloGold Ashanti announced its decision to sell the entire stake owned by it and its joint venture partner IAMGOLD in the Sadiola gold mine project in Mali.

The 82% ownership stake of AngloGold Ashanti and IAMGOLD will be sold to Australia’s Allied Gold Corp for $105 million. It must be noted that the government o Mali owns the remaining 18% stake in the mine. The deal is expected to complete by end-April next year. Upon closing of the deal, both the firms will receive a cash dividend of $6.15 million. Also, Mali government will receive a cash dividend of $2.7 million.

The transaction is part of company’s ongoing strategic plan to streamline its portfolio by focussing on assets with potential to build critical mass in the long term. It must be noted that the company is already in the process of selling its Cerro Vanguardia mine in Argentina, and Mponeng mine in South Africa. At the same time, it had recently announced reopening of Obuasi mine in Ghana after almost five years.