Resolute Mining Ltd has announced a deal to acquire two gold projects in Côte d’Ivoire from AngloGold Ashanti PLC for a total of $150 million in cash, alongside a royalty agreement and the transfer of certain mining permits.
The agreement will see Resolute purchase the Doropo and ABC gold projects. Under the terms of the deal, the Australian gold miner will pay $25 million upfront, with further instalments of $50 million due 18 months after completion and $75 million after 30 months.
As part of the transaction, AngloGold will receive a 2% royalty on the ABC project. Resolute will also make an additional $10 million payment if a feasibility study confirms that ABC contains over one million ounces of gold in mineral reserves. The ABC site currently holds an inferred mineral resource estimate of 2.2 million ounces.
Furthermore, Resolute has agreed to transfer all its exploration permits in Guinea to AngloGold. If the transfers are not completed within 18 months—pending government approval—Resolute will instead pay $25 million.
The Doropo project, situated in northeastern Côte d’Ivoire, is the more developed of the two sites and is currently at the definitive feasibility study stage, with mineral reserves of 1.9 million ounces. Resolute stated that Doropo is expected to complement its existing operations at the Syama mine in Mali and the Mako mine in Senegal once it enters production.
Despite the announcement, Resolute shares fell by 1.0% to 23.90 pence on the London Stock Exchange by midday on Thursday. AngloGold Ashanti’s shares declined by 3.4% to $40.74 in New York’s pre-market trading. The Johannesburg Stock Exchange was closed due to the Workers’ Day public holiday in South Africa.
