(Ecofin Agency) - Initially, the deal was with Atlas Metals, a British mining group, but it was later canceled.

Managem Group, owned by pan-African private equity fund Al Mada, announced on January 8, 2025, that it had finalized the sale of Compagnie minière d'Oumejrane (CMO) to Purple Hedge Resources Morocco. Purple Hedge Resources Morocco is a private company based in Morocco and a full subsidiary of Purple Hedge DWC, a private company based in the United Arab Emirates.

Purple Hedge Resources Morocco has paid $30 million for all CMO's shares, plus two conditional payments of over $2 million, to be settled after 12 months.

"The finalization of this sale marks a decisive step, with the choice of a solid acquirer capable of financing both the acquisition and the development of the Oumejrane mine," said Imad Toumi, Chairman and CEO of Managem. He added: "We are confident that Purple Hedge DWC, with the support of its investors, will maintain the standards of excellence in health, safety and environmental protection that have always been at the heart of our priorities."

According to Managem, Purple Hedge DWC is committed to safeguarding the interests of CMO's employees and ensuring the continuity of the mine's operations while respecting the high standards set by the Moroccan mining group.

A missed opportunity 

The deal was initially with Atlas Metals (formerly Metal NRG). On October 17, 2024, Managem had agreed with the British group on a $32 million deal, including a $2 million conditional payment.

The deal was, however, finally canceled in December, as the British group failed to meet the financing conditions agreed upon with Managem, following the failure to raise the funds needed to finalize the deal within the stipulated timeframe. Atlas Metals Group was expected to raise up to £15 million from institutional investors to complete the transaction.

Purple Hedge will leverage the new asset to strengthen its activities in Morocco and Africa. To this end, it is benefiting from the equity backing of a private investor active in Africa, as well as financing from a New York-based investment fund specializing in strategic metals and minerals for the energy transition.

SG