Africa-focused gold miner Resolute Mining has signed a binding agreement with AngloGold Ashanti to acquire the Doropo and ABC gold projects in Côte d’Ivoire for a total consideration of $150m (A$234.94m).
The cash consideration will be paid in three instalments including $25m on closing, $50m 18 months after closing and the remaining $75m 30 months after closing.
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The deal also includes a 2% net smelter return royalty and milestone payments tied to the ABC Project.
Furthermore, Resolute will transfer all exploration permits held in Guinea by divesting its Guinean subsidiary to AngloGold, subject to government approval.
If the transfer is not finalised within 18 months from the date of signing, Resolute will pay AngloGold $25m as compensation in lieu of the transfer.
The acquisition of the Doropo and ABC gold projects aims to boost Resolute’s annual gold output to beyond 500,000oz within the next three years.
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By GlobalDataThe Doropo project comprises seven exploration permits over an area of approximately 1,850km². This project, along with the greenfield exploration-stage ABC project, represents a substantial growth opportunity for Resolute.
The acquisition and development of Doropo will be funded through existing liquidity and other debt facilities, with project financing discussions to be initiated.
Once operational, the Doropo Project will enhance Resolute’s current operations including the Syama Mine in Mali and the Mako Mine in Senegal, while also contributing to revenue diversification with the addition of operations in Cote d’Ivoire.
The Doropo project’s mineral reserves are currently estimated at 38.2 million tonnes (mt) grading 1.53 grams per tonne, with anticipated production of 167,000oz per annum over a ten-year period.
The company is currently optimising the 2024 definitive feasibility study (DFS) ahead of a final investment decision by the end of 2025. It will be followed by construction and first production by mid-2028.
The ABC project has an inferred mineral resource estimate of 2.16 million ounces (moz).
Resolute managing director and CEO Chris Eger said: “Once in production, Doropo will complement Resolute’s existing operations at Syama and Mako, further strengthening the Group’s cash flow. Doropo is expected to be a low-cost asset, as outlined in the 2024 DFS, and is expected to significantly enhance group performance.
“The addition of Doropo and ABC fits into Resolute’s strategy of becoming a diversified leading gold producer in Africa with strong growth potential. Syama’s size and longevity provides a foundation of stable cash flows for the company to execute on its growth plans. We also remain excited about the extension of the mine life at our Mako operation through the Bantaco and Tomboronkoto satellite projects.”
In November 2024, Resolute signed a memorandum of understanding (protocol) with the Government of Mali to pay $160m to resolve a tax dispute.
