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Allied Gold Announces Closing of Acquisition of Diba Project, Aimed at Improving Near-Term Cash Flow by Providing Higher-Grade and Lower-Cost Oxide Ore Feed to Sadiola Gold Mine
TORONTO, Nov. 9, 2023 /CNW/ - Allied Gold Corporation (TSX: AAUC) ("Allied" or the "Company") is pleased to announce that the Company has completed its previous
About this update from Allied Gold Corporation
[{"type":"text","content":" TORONTO, Nov. 9, 2023 /CNW/ - Allied Gold Corporation (TSX: AAUC) (\"Allied\" or the \"Company\") is pleased to announce that the Company has completed its previously announced acquisition of the permitted Korali-Sud Small Scale Mining License as well as beneficial interest of the highly prospective Lakanfla Exploration License (together, the \"Project\" or \"Diba\") by acquiring all of the shares of Legend Mali (BVI) III Inc. from LGN Holdings (BVI) Inc., a wholly owned subsidiary of Elemental Altus Royalties Corp (TSXV: ELE) (OTCQX: ELEMF) (\"Elemental Altus\") for consideration comprised of a modest upfront cash payment, deferred payments based on the achievement of performance, production and operational milestones, and a Net Smelter Returns (\"NSR\") royalty. Strategic Rationale The Company is actively implementing its strategic plan to maximize oxide ore content at its flagship Sadiola Gold Mine (\"Sadiola\") as it pursues a two-phased expansion plan. In the initial Phase 1 expansion, modifications to the existing plant are underway to accommodate a growing percentage of fresh rock. Subsequently, in Phase 2, a new processing plant exclusively dedicated to fresh rock will be constructed. Allied's strategic approach revolves around maximizing oxide ore content to enhance production during the Phase 1 expansion. This effort aims to reduce costs, thereby maximizing margins, EBITDA, and cash flows, starting as early as 2024. In tandem with ongoing exploration targets aimed at increasing oxide ore inventory across Allied's portfolio, the Diba Project plays a crucial role in bolstering the Company's cash flows and liquidity in the near term. This is particularly significant as the Company pursues its growth initiatives. Situated 15 kilometers south of Sadiola's processing plant and adjacent to the Sadiola Large Scale Mining License, the Diba Project presents a unique opportunity. Its geological characteristics indicate the feasibility of Open Pit mining, utilizing the same equipment profile as Sadiola. Moreover, the ore can be processed at the existing CIP plant, offering the potential to capture significant synergies and create substantial value. The operating plan consists of mining and trucking the high-grade oxides up to a throughput of 1.8 million tonnes per year. These high-grade oxides are expected to increase the average...