Moroccan miner Managem will boost its exposure to gold after agreeing last week to acquire a stake in Avocet Mining’s Tri-K gold project in Guinea.
As part of the deal, Managem and LSE-listed Avocet will set up a joint-venture company to develop Tri-K, which has a total mineral resource of 3 million oz and demonstrated existing reserves of 480,000 oz of gold, according to a 2013 feasibility study.
The agreement is in two phases – Managem will first acquire a 40% interest in Tri-K to develop the asset and later increase its interest to 70% if a reserve of at least 1 million ounces of gold is found.
If reserves fail to increase to 1 million ounces, Managem will acquire 60% of the project.
“The Tri-K project is a significant growth opportunity and we received strong support from the Guinean Ministry of Mines to develop a large-scale gold mining operation,” Managem CEO Imad Toumi said.
The deal is part of a long-term corporate strategy to position Managem for “new mining frontiers across Africa with a long-term standing”, Toumi added.
Managem already operates gold projects in Gabon and Sudan as well as the Pumpi copper-gold project in the Democratic Republic of Congo (DRC).
The spot gold price was recently quoted at $1,252.00/1,252.30 per oz, down $2.05 on yesterday’s close.
(Editing by Mark Shaw)