Allied Gold announced on Thursday, October 16, that it is initiating a share placement to raise approximately C$175 million, around $124 million, to support ongoing work at its Sadiola gold mine in Mali and Kurmuk gold mine in Ethiopia.
The company intends to offer investors 6.4 million common shares at a price of C$27.35 per share. Subject to approvals from the Toronto Stock Exchange and the New York Stock Exchange, the placement is expected to close by Friday, October 24, according to Ecofin Agency.
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“The Company intends to use the net proceeds of the Offering to i) fund its optimization and growth initiatives particularly to accelerate development of infrastructure for the next phase of expansion at Sadiola which includes improvements in processing capacity and acceleration of the implementation of certain components of the recently announced energy program, ii) modify the plant under development at Kurmuk to increase average processing capacity for higher levels of production,” the company said in its note.
These efforts are central to Allied Gold’s strategy of raising its total production to 800,000 ounces of gold by 2029.
This plan relies heavily on the Sadiola mine extension project, which aims to increase the Malian asset’s annual production to an average of 300,000 ounces, up from 193,462 ounces produced in 2024.
Alongside Sadiola, the Bonikro and Agbaou mines in Côte d’Ivoire make up Allied’s current producing portfolio.
The commissioning of Kurmuk, scheduled for 2026, is also a key component of the company’s growth program.
Allied Gold projects that the Ethiopian mine, still under construction, will yield an average of 200,000 ounces per year over a ten-year period.
Meanwhile, the company is targeting total production of between 375,000 and 400,000 ounces of gold for 2025.
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Image Credit: Mining Technology
