Resolute Mining switches its focus from Mali to Cote d’Ivoire with $US150m purchase from AngloGold Ashanti

A shakedown in Mali has seen gold miner Resolute Mining pay $US150 million ($234m) to significantly step up its presence in a neighbouring West African country. ASX and London-listed Resolute will hand over the cash to AngloGold Ashanti for two gold developments in Cote d’Ivoire. One of the projects is at a definitive feasibility study stage, while the other is at an early exploration phase. As part of the deal, AngloGold is set to take over Resolute’s exploration permits in Guinea — another West African country — subject to government approval. If Resolute, which has an office in Perth, fails to receive that approval within 18 months it will have to fork out another $US25m to AngloGold. Anglo also gets a 2 per cent net smelter royalty over the early-stage project and receives a $US10m payment if a future feasibility study shows the deposit contains more than 1 million ounces of gold. Resolute chief executive Chris Eger said the deal marked an “exciting new chapter” for the dual-listed miner. “The Doropo and ABC projects present a compelling opportunity to diversify and increase our production profile in the near term to over 500,000 ounces, harnessing our existing exploration presence in Côte d’Ivoire, a highly regarded and established mining jurisdiction,” Mr Eger said. “Doropo is expected to be a low-cost asset, as outlined in the 2024 definitive feasibility study, and is expected to significantly enhance group performance.” Mr Eger ascended from chief financial officer to the top job in December following predecessor Terry Holohan’s leave of absence and subsequent resignation. Mr Holohan was detained by the Malian government for two weeks in November and released only after Resolute paid $US160m demanded by the country’s rulers to resolve a “tax dispute”. Resolute runs the Syama gold mine in the south-west of Mali, about 30km from the Côte d’Ivoire border and 300km south-east of Mali’s capital Bamako. It also owns a mine in the West African country of Senegal. Roughly 40 per cent of Resolute’s value has been wiped away since news of the Malian shakedown broke, despite the record gold price environment. Shares in Resolute were down 1.5 per cent on Thursday morning.