El Salvador lawmakers overturn mining ban Bukele called absurd
El Salvador became the first country in the world to ban all forms of metals mining in 2017.
IAMGOLD (TSX: IMG) (NYSE: IAG) and joint venture partner AngloGold Ashanti announced Wednesday that they completed the sale of their collective interests in Société d’Exploitation des Mines d’Or de Sadiola S.A. to Allied Gold Corp. (TSE: ALG).
SEMOS’ principal asset is the Sadiola gold mine, in the Kayes region of Western Mali. Sadiola, one of the three assets AngloGold Ashanti put on the chopping block this year and IAMGOLD’s founding asset, is also owned by Mali’s government, which has an 18% interest.
The $150 million deal was first announced in December 2019 but delayed in August over a coup, which was Mali’s second in less than ten years.
The $150 million deal was first announced in December 2019 but delayed in August over a coup, which was Mali’s second in less than ten years
The coup capped weeks of protests demanding that Malian President Ibrahim Boubacar Keita step down. Keita faced opposition criticism for alleged corruption and nepotism within his administration, and the mishandling of an escalating Islamist insurgency in the West African nation.
B2Gold, Resolute Mining, AngloGold Ashanti, Hummingbird Resources, Roscan and Cora Gold said operations and staff were unaffected, but traders sold shares because of increased political risk.
Immediately prior to the transaction, the companies said, a dividend of $20 million was declared and paid by SEMOS pro-rata to its shareholders. IAMGOLD and AngloGold Ashanti each received a cash dividend of $8.2 million and the Republic of Mali received a cash dividend of $3.6 million.
“We are pleased to complete this transaction, which underpins our commitment and focus on a prudent capital allocation strategy as we embark on a transformational path with the execution on our growth pipeline,” IAMGOLD CEO Gordon Stothart said in a press release.
“The Sadiola mine was the founding cornerstone asset and building block of our company, and we would like to recognize the Sadiola team, surrounding communities and all stakeholders for their valued support over more than twenty years.”
Comments
Leroy Mills
Intereted in investing in small cap African gold mining and African mining generally.