Allied Gold lines up $175m streaming deal for Ethiopia project
ALLIED Gold has raised $175m in a streaming deal with Wheaton Precious International, the Toronto-listed firm announced on Friday.The upfront cash payment is for development of the Kurmuk gold project in Ethiopia, the country’s first. When it comes onstream in mid-2026, Kurmuk will have average life of mine production of 240,000 ounces of gold per year.In terms of the streaming agreement, Wheaton Precious will pay Allied $175m in four equal installments equal to 6.7% of payable gold from Kurmuk, reducing to 4.8% of gold once 220,000 oz has been delivered. Wheaton Precious will pay 15% of the spot price of gold. Allied also has the option of buying back the streaming deal.The way is now paved for the balance of Kurmuk’s $450m capital cost to be financed. Allied said previously it was planning a prepayment deal.“The gold prepay is expected to be led by the lending syndicate for the company’s revolving credit facility with proceeds available to Allied following the completion of the stream financing,” said Peter Marrone, president and CEO of Allied Gold in a statement.Allied raised C$221m ($157m) in an equity raise during October with Wheaton Precious buying C$20m ($14.25m) in stock.Kurmuk is an important asset for Allied Gold as it will lower the company’s overall cost of production. Currently, the company mines up to 400,000 oz/year from the Sadiola mine in Mali and and Cote d’Ivoire’s Bonikro/Agbaou at a combined all-in sustaining cost of about $1,400/oz. In contrast, Kurmuk is scoped to produce gold at an AISC of $900/oz.Allied is targeting gold output at about 600,000 oz/year in 2026, increasing to 800,000 oz/year by 2028.Shares in the company about 4% lower year-to-date. Commenting on the share price, Marrone said the potential of Kurmuk had not been factored in. “We expect the Kurmuk mine will become one of the more significant precious metal mines in the world delivering significant production and cash flow following its construction,” he said. The post Allied Gold lines up $175m streaming deal for Ethiopia project appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com
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