The gold mine, which poured its first gold in October 2000, stopped operations last year
Gold mining companies AngloGold Ashanti and Barrick Gold have agreed to divest their 80% stake in the Morila gold mine south of Bamako, Mali to an Australian gold explorer Mali Lithium.
Mali Lithium will acquire Morila, which holds 80% of the Malian registered company Société des Mines de Morila that owns the gold mine. The remaining 20% stake is owned by Mali government.
The Jersey-based company Morila is equally owned by AngloGold and Barrick Gold.
AngloGold said that the purchase price of the mine is estimated to be between $22m and $27m.
The gold mine poured its first gold in October 2000 and stopped mining operations last year. It is currently processing only ore stockpiles and has produced about 27,000oz of gold in 2019.
The new ownership structure is expected to enable the mine to utilise existing infrastructure to access additional resources and extend the life of mine.
Morila gold mine acquisition to be concluded by October this year
Subject to certain conditions that include the acknowledgement of the transaction by the Mali government, the transaction is expected to be concluded by October this year.
Upon completion of the deal, Mali Lithium is planning to increase the sustainable production at the Morila mine.
Mali Lithium executive chairman Alistair Cowden said: “We are already working on defining larger Resources and Reserves that may support a long mine life at higher rates of gold production through a restart of mining.
“Our current intention is that all employees at the mine will retained and it is our hope that we can support the local community through additional employment opportunities as operations scale up.
“We have a second world class asset in the Goulamina Lithium Project (Goulamina), however, Morila and Goulamina will benefit from a sharp individual focus.”