• $9 million joint-venture becomes effective after permit approval

• AngloGold can earn up to 70% stake over five years

• Project located near historic Golden Pride mine

In Tanzania, a $9 million joint venture agreement between AngloGold Ashanti and Ecograf Limited around the Golden Eagle gold exploration project has officially taken effect. The announcement was made on Wednesday, December 17, by the Australian company, which said it has now obtained prospecting permits from the Tanzanian government for the asset it previously controlled at 100%.

In May 2024, the two companies signed an agreement allowing AngloGold Ashanti to acquire up to 70% of the Golden Eagle project by investing $9 million over five years. The commitment paves the way for the creation of a joint venture, with Ecograf retaining the remaining 30%. Long subject to the approval of exploration permits by authorities in Dodoma, the agreement has now entered into force following the issuance of these authorizations.

Ecograf Limited said prospecting permits for the Golden Eagle project have been granted by the Tanzanian Ministry of Minerals, a condition precedent to the implementation of the participation agreement with AngloGold Ashanti Holdings, allowing the agreement to enter into force.

The partnership aligns with the growth plans of both groups. Already the operator of Geita, the country’s largest gold mine, AngloGold Ashanti is strengthening its presence in Tanzania’s gold sector, with the aim of identifying new promising deposits. For Ecograf, support from a strategic partner at Golden Eagle allows it to focus resources on developing its future Epanko graphite mine, while maintaining exposure to the gold sector.

A “strong potential for a Tier 1 discovery” is seen at Golden Eagle, which lies in the same corridor as Golden Pride, a historic mine that produced 3.4 million ounces. At this stage, however, no exploration program has been announced to support these prospects. Further developments are expected in the coming months, as the gold market remains strong, with prices up 67% since the start of the year, according to Trading Economics.

Aurel Sèdjro Houenou