JV partners AngloGold, Iamgold selling interest in Sadiola mine
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(Kitco News) - Joint venture partners AngloGold Ashanti Ltd. and Iamgold Corp. have agreed to sell their 82% stake in the Sadiola gold mine to Australia’s Allied Gold Corp. for $105 million, the companies announced Monday.
Each partner owns 41% of the mine. The government of Mali has an 18% stake in Sadiola and must provide certain approvals for the transaction to become final, the companies said.
AngloGold and Iamgold officials say they hope all conditions will be fulfilled by the end of April.
Further, once all conditions are met and immediately prior to closing, AngloGold and Iamgold will both receive a $6.15 million dividend, while the government of Mali will receive a $2.7 million dividend.
“This transaction reflects our continuing efforts toward self-funding and focused capital allocation,” said Gord Stothart, president and chief operating officer of Iamgold. He noted that the Sadiola mine was “the founding asset” of Iamgold.
“This transaction is in line with our disciplined capital allocation strategy as we move to streamline our portfolio and intensify our focus on assets that have potential to build critical mass in the long term,” said Kelvin Dushnisky, chief executive officer AngloGold.