By Adriano Marchese

Allied Gold said it will receive more than $500 million in funding from Ambrosia Investment Holding, as the United Arab Emirates-based investment fund looks expand its interest in the company.

The Toronto-based miner said Tuesday that it has entered into a strategic partnership with Ambrosia to accelerate the company's growth initiatives, optimize operations and pursue strategic options.

The transaction brings proceeds of over $500 million to Allied Gold, including about $250 million in upfront cash which will go towards expanding the Sadiola mine in Mali as well as for the development of the Kurmuk project in Ethiopia.

Kurmuk is expected to start production mid-next year with a target output of about 290,000 gold ounces a year over the first four years and 240,000 gold ounces a year over the life of mine.

As part of the partnership, Ambrosia will receive a 50% interest in Allied Gold's interest in Allied Gold ML, the entity which holds the interests in the Mali operations.

For the Sadiola mine, a joint venture will be created with Ambrosia which will provide for the governance of the operation, while Allied Gold will remain its operator.

Ambrosia also expects to continue to buy Allied Gold shares in the market, but that it won't exceed an ownership of 19% without the company's consent.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

February 25, 2025 08:11 ET (13:11 GMT)

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