South Africa's AngloGold Ashanti (NYSE:AU) and its joint-venture partner IAMGOLD (TSX: IMG) are selling their 82% stake in the Sadiola mine in Mali to Australia's Allied Gold for US$105 million.
The mine, Iamgold's founding asset and one of the three properties AngloGold Ashanti put on the chopping block this year, is also owned by Mali's government, which has an 18% interest.
Under the deal, both companies will receive a cash dividend of US$6.15 million. The government of Mali will receive a cash dividend of US$2.7 million. The sale is expected to close by the end of April 2020.
"This transaction is in line with our disciplined capital allocation strategy as we move to streamline our portfolio and intensify our focus on assets that have potential to build critical mass in the long term," Kelvin Dushnisky, AngloGold Ashanti's CEO, said in a statement.
Dushnisky, who took the helm in September 2018 after serving as president and an executive director at Barrick Gold (TSX: ABX; NYSE: GOLD), wants to streamline the company's assets. As part of that plan, he is also trying to sell Cerro Vanguardia in Argentina and the Mponeng mine in South Africa.
The sale of Mponeng, the world's deepest mine, would be the final step in the miner's withdrawal from South Africa, since selling and shutting down other mines in the country to stem losses.
It could also be a precursor to AngloGold moving its primary listing to London or Toronto. Dushnisky has said the company plans to retain its listing on the Johannesburg Stock Exchange.
AngloGold accelerated expansion outside its home country in 2004, when it acquired Ashanti Goldfields, and today operates mines on four continents.
Last week, the company reopened its Obuasi mine in Ghana. The mine is forecast to produce 350,000 to 400,000 oz. gold per year for the first ten years.
This article first appeared in our sister publication, Mining.com: https://www.mining.com/anglogold-iamgold-to-sell-stake-in-malis-sadiola-mine/