ALLIED GOLD ANNOUNCES STRATEGIC PARTNERSHIP WITH UAE-BASED AMBROSIA INVESTMENT HOLDING AND RELATED TRANSACTIONS

Core Insights - Allied Gold Corporation has formed a strategic partnership with Ambrosia Investment Holding to enhance the value of its Sadiola mine in Mali and strengthen its financial position [1][2][3] Partnership Overview - The partnership aims to leverage Ambrosia's regional expertise and influence in Africa, particularly through the United Arab Emirates, to complement Allied's operational and technical capabilities [2][9] - The transaction is expected to provide over US$500 million in total proceeds, including approximately US$250 million in upfront cash, significantly enhancing Allied's financial flexibility [3][5] Project Developments - The Kurmuk project in Ethiopia is projected to start production in mid-2026, targeting approximately 290,000 gold ounces annually for the first four years and 240,000 ounces over its mine life [4][10] - The phased expansion at the Sadiola mine aims to increase production from approximately 170,000 ounces in 2023 to a range of 200,000 to 230,000 ounces per year, with further expansions targeting 400,000 ounces annually by late 2028 [4][10] Financial Implications - The partnership will create a robust balance sheet for Allied, supporting its growth plans and allowing for optimized capital allocation for the Sadiola mine expansion [3][9] - The upfront cash payment and deferred consideration from the Mali transaction will provide immediate value realization for shareholders, valuing Allied's 80% interest in the Sadiola mine at US$750 million [9][10] Energy Solutions - A power supply agreement with ATGC LLC will provide a renewable energy solution to the Sadiola mine, expected to reduce operating costs and improve environmental performance [6][9] Strategic Rationale - The partnership is anticipated to enhance Allied's ability to pursue significant value-creation opportunities in West Africa, leveraging Ambrosia's relationships and expertise [9][10] - The collaboration is seen as a unique transaction, combining Canadian mining expertise with Emirati investment in Mali, aiming for long-term growth and operational efficiency [10][11]