Resolute Mining (ASX:RSG) acquired AngloGold Ashanti's Doropo and ABC gold projects in the Ivory Coast for a cash consideration of $150 million as well as contingent consideration, according to a Thursday Australian bourse filing.
The deal is expected to close shortly, the filing said.
The contingent consideration includes a 2% net smelter royalty over the ABC project as well as a $10 million contingent payment due upon the release of a feasibility study over the project, outlining an ore reserve of over 1 million ounces.
Resolute's Guinea exploration permits will be transferred to AngloGold Ashanti.
The upfront cash consideration will be funded from existing liquidity sources, while the deferred cash consideration is expected to be funded from cash flows generated from the firm's operations at the Mako mine in Senegal and the Syama mine in Mali.
The exploitation permit for the Doropo project is being processed and is expected to be approved in the coming months, per the filing.
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