Gold in Canada can look at the energy supply deal options at the Sadiola mine

Written by Devia Rajobal

The CEO of Reuters said in an interview on Monday that Toronto (Reuters) -Gold can discuss the alternative options for the Energy Supply Agreement in the Sadiola mine in Mali after an increase in gold prices and the emergence of new opportunities.

Gold Miner has signed an agreement in February with the UAE -based Ambrosia Investment, giving Ambrosia 50 % stake in the mine to install a new power supply system that will improve the costs of the mine. The Allied Gold was also supposed to receive $ 500 million, with approximately $ 250 million in mind the cash from Ambrosia.

The deal has not been closed yet.

The CEO of Allied Gold Peter Marrone said that the deal may be closed in June, but if it does not happen, it’s because other options are available to the company.

“Our position in the country has changed dramatically with gold prices,” Maroun said. “The world has changed since we put the deal together.”

Gold prices rose nearly 30 % this year so far and set a record $ 3500.05 an ounce on April 22.

Ambrosia Investment did not immediately respond to the comment.

Maroun said that the company of the company’s energy solutions had changed dramatically after the gold allies signed a new mining conference with the Mali government last year.

Mali is the third largest gold producer in Africa and wants the military -led government to increase revenues from the mining sector. The government believes that the current arrangements are unfair and said that foreign multinational companies should comply with their demands if they want to continue to work.

The country is in conflict with other Canadian miners, Barrick’s mining, a only gold mine worker who did not sign the new mining code in Mali.

The Allied Gold said that it took a pragmatic approach to a settlement with the government.

“We have searched for the best that we can achieve returns to our investors, and we have reached a conclusion that we will not take action based on cooperation and support,” Maroun said.

The Allied Gold, which was already included in Toronto Stock Exchange, started its double inclusion on Monday on the New York Stock Exchange.

(Devia Rajajpal in Toronto; Edit by Nia Williams)