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Mining

Mali acquires another 10% of Fekola mines

Thursday, 16 August 2018 20:30

(Ecofin Agency) - Mali increased to 20% its participation in Fekola SA, a subsidiary of B2Gold which owns the Fekola gold mine. Indeed, this week, the mining company indicated that the ministers' council approved the purchase of an additional 10% shares in Fekola SA. Let’s remind that the government already owns 10% bonus shares.

By exerting this option conferred to it under the mining agreement with Fekola, Mali will perform its duties as a shareholder and pay an additional $47 million. According to the terms of this new agreement, B2Gold will consider this amount as a debt subjected to interest rates.

This new transaction will help the government increase the revenues it generates from the mine which entered production in October 2017. Apart from the 10% of Fekola’s net revenues B2Gold is paying to the government in the framework of bonus shares, an additional 10% will be paid to Mali as a shareholder.

Let’s note that this year would be the first year Fekola mines reached its full production (between 910,000 and 950,000 ounces). Between 2018 and 2020, the company expects  $1.2 billion average sale and $0.5 billion cash flows annually.

Louis-Nino Kansoun





 
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ECOFIN AGENCY offers a selection of articles translated from AGENCE ECOFIN. Founded in 2011, Agence Ecofin is a leader in Francophone Pan-African economic news, particularly in West and Central Africa. The agency publishes daily news on nine African economic sectors: Public Management, Finance, ICT, Agribusiness, Energy, Mining, Transport & Logistics, Communication, and Training.

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