rila mine has produced more than 7.4 million ounces of gold over 20 years from a 4.5 million tonnes per annum plant and will instantly transform Mali into a cash-generating gold producer.
Morila is producing gold from hydraulic mining and processing of tailings and will provide cashflow for Mali Lithium from completion of the acquisition.
“Transformative transaction”
MLL executive chairman Dr Alistair Cowden said: “Morila is one of West Africa’s great gold mines and we are excited and privileged to acquire a mine of Morila’s calibre with its past production plus mineral resources (gold endowment) of 8.7 million ounces of gold.
“This is truly a transformative transaction for the company as we become a gold producer.”
Investors have responded strongly with shares surging 36% during the first hour to 19 cents, a new 12-month high.
“Unique advantage”
Cowden said: “We have a unique advantage as the newest gold producer on ASX as Morila has all the infrastructure required of an operating remote gold mine as well as the expertise of the operating team.
“We will benefit from the substantial sunk capital invested by the previous owners over the last 20 years.”
The acquisition is subject to securing acquisition finance and no objection from government, with the parties targeting completion by the end of October 2020.
Source: Proactive
