21 Nov Sycamore Mining signs deal to redevelop Guinea gold mine
The government of Guinea has announced that Sycamore Mining will redevelop the Kiniero gold mine after the Cyprus-based investment firm made a winning bid for the past producing mine.
“Sycamore’s was the winning bid, and we signed an outline agreement today,” said Abdoulaye Magassouba, Guinea’s minister of mines and geology.
Multi-metals focused Sycamore’s bid for the Kiniero mine was selected over competing offers from three other mining companies.
The deal requires Sycamore to set up a Guinea subsidiary and deliver a feasibility study within 180 days, after which the government will grant a mining licence.
Sycamore must also immediately inject US$5 million into the Guinea entity, and eventually invest $35 million more towards exploitation and potential extension of the mine.
The Kiniero mine has been out of production since Canada’s Semafo placed it under care and maintenance and sold it to TSX-listed New Dawn Mining.
“We aim to redevelop this plant as fast as possible, by restarting the mine with the strongest possible production,” said Sycamore Mining CEO Matthieu Sharples at the signing agreement in Guinea’s capital city Conakry.
Elsewhere, South African mining giant AngloGold Ashanti will resume operations at its Siguiri gold mine after reaching an agreement with Guinea’s government. Production at the large scale mine was suspended last week after protestors invaded the site.