• Funds to boost Sadiola output, expand Kurmuk plant capacity
• Targeting 800,000 oz gold production annually by 2029
  

Allied Gold announced on Thursday, October 16, that it is launching a share placement aimed at raising approximately C$175 million (about $124 million) to fund ongoing work at its Sadiola and Kurmuk gold mines in Mali and Ethiopia, respectively.

The company plans to offer investors 6.4 million common shares at a price of C$27.35 per share. Subject to necessary approvals from the Toronto Stock Exchange (TSX) and the New York Stock Exchange (NYSE), the placement is expected to close by Friday, October 24.

"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 informs in its note. 

These initiatives are central to Allied Gold's strategy of boosting its total production to 800,000 ounces of gold by 2029. This ambition relies heavily on the Sadiola mine extension project, which aims to optimize the Malian asset’s production to an annual average of 300,000 ounces, up from the 193,462 ounces delivered in 2024. Sadiola, along with the Bonikro and Agbaou mines in Côte d’Ivoire, forms Allied's current producing portfolio.

The commissioning of Kurmuk, scheduled for 2026, is also an integral part of the growth program. The company projects the Ethiopian mine, which is currently under construction, will produce an average of 200,000 ounces per year for 10 years. While its growth plan is underway, Allied Gold is targeting a total production of between 375,000 and 400,000 ounces of gold for 2025.

Aurel Sèdjro Houenou