AngloGold Ashanti and Barrick Gold announced on Monday that they had agreed to sell their effective 80% stake in Morila Gold Mine in Mali to Mali Lithium.
The remaining 20% interest in the gold mine is held by Mali.
In an update to shareholders, AngloGold said that Morila Gold Mine halted mining operations in 2019, and is currently processing only ore stockpiles. It produced 27 000oz of gold in 2019.
"Mali Lithium, based in Perth, Western Australia, aims to increase sustainable production at Morila Gold Mine as quickly as possible after acquisition," it said.
The purchase price is estimated by AngloGold to be between $22 million and $27 million, or between roughly R366 million and R450 million at current exchange rates.
AngloGold said its its share of the net consideration will be approximately US$10 about (R166 million) or less.
"The closing of the transaction is conditional on, among others, Mali Lithium securing acquisition finance and that the deal be acknowledged without objection by the Government of Mali."