LONDON: Resolute Mining Ltd. announced Thursday it has entered into a binding agreement to acquire the Doropo and ABC Projects in Côte d’Ivoire from AngloGold Ashanti for $150 million.
The acquisition includes $25 million upfront cash payment at closing and $125 million deferred payments in two installments: $50 million after 18 months and $75 million after 30 months.
The transaction also incorporates a 2% royalty on the ABC Project and a $10 million contingent payment, triggered upon the release of a feasibility study demonstrating a Mineral Reserve of over 1 million ounces of gold. Additionally, Resolute will transfer its Guinea exploration permits to AngloGold, pending government approval. If this transfer isn’t finalized within 18 months, Resolute will pay $25 million to AngloGold instead.
The Doropo Project, located in northeastern Côte d’Ivoire, is at the definitive feasibility study stage with a Mineral Reserve of 1.88 million ounces grading 1.53 grams per tonne of gold. The development is projected to increase Resolute’s annual gold production to more than 500,000 ounces, complementing operations at the Syama Gold Mine in Mali and the Mako Gold Mine in Senegal.
Resolute CEO Chris Eger said the acquisition marks a pivotal moment in the company’s strategy to diversify and expand its portfolio, stating, “Doropo and ABC Projects present compelling opportunities to increase our production profile to over 500,000 ounces and build on our existing presence in Côte d’Ivoire.”
Resolute plans to finalize permitting and update the 2024 Doropo feasibility study to reflect current gold price assumptions, aiming for a final investment decision by the end of 2025. Construction is expected to begin shortly after, with first production anticipated by mid-2028.
The deal reinforces Resolute’s strategic goal to become a leading diversified gold producer in Africa. Once operational, Doropo is expected to deliver stable cash flows, complementing the company’s existing assets and providing long-term value for stakeholders.