Morocco’s Managem expands stake to 85% in a gold project in Guinea Conakry
Moroccan mining firm, Managem, announced, Tuesday, that it acquired the remaining 30% stake in the joint venture with West African-focused gold mining and exploration company Avocet Mining, for $21 million.
In 2016, Managem acquired 40% of this project in partnership with Avocet Mining before increasing this share to 70% in 2018.
With this new acquisition, the Moroccan company expands to 85% its stake in the capital of SMM (Mandiana Mining Companies), which holds the Tri-K gold operating license. The remaining 15% stake in the joint venture that runs the gold project remains in the hands of Soguipami (Guinean mining heritage company).
In a statement relayed by Reuters news agency, Managem indicates that this new acquisition is part of its plan to strengthen gold production in Africa and in Guinea.
The group, which initiated the Tri-K project financing program for a $176 million construction investment, is planning to «launch production at the 490-square-kilometer project by 2020 with annual production expected at 120,000 ounces of gold», Reuters explained.
The Tri-K project, one of the largest in the group, has an estimated reserve of more than 1 million ounces of gold. It could produce 3.5 tons of gold a year.
Managem operates in the Democratic Republic of the Congo, Côte d’Ivoire, Ethiopia, Gabon, Guinea Conakry, Mali, Morocco and Sudan.