JOHANNESBURG – Mining company AngloGold Ashanti and its joint venture partner Iamgold plan to sell their stake in the Sadiola project in Mali for $105-million, as the South African company looks to streamline its portfolio.
AngloGold and Iamgold, which each hold 41% in the asset with the remaining 18% held by Mali's government, plan to sell their stake in the operation, whose principal asset is the Sadiola Mine, to Allied Gold.
Under the deal, which is expected to complete by the end of April, both firms will receive a cash dividend of $6.15-million and the government of Mali will receive a cash dividend of $2.7-million.
"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," said AngloGold Ashanti CEO Kelvin Dushnisky.
AngloGold said in May it would review divestment options for its Mponeng mine and other South African assets to focus on higher returns elsewhere.