Managem, Wanbao Sign Partnership to Develop Gold Mining Project in Sudan
Casablanca – Managem Group signed a partnership with Wanbao Mining Group, an international mining operator, to jointly develop large-scale gold mining project in Sudan.
“In line with its strategy to develop its investments on a pan-African scale and to consolidate its presence in Sudan, Managem is pleased to report that all key conditions have now been finalized with the Partnership being effective,” the Group said in a press release.
Under the terms of the Partnership, Managem will retain 65% ownership (excluding any interest attributable to the government of Sudan) in the exploitation and exploration license – Block 15 and the associated Gabgaba gold mine and expansion project, as well as exploration licenses, being Blocks 9 and 24, with Wanbao Mining owning the remaining 35%. In addition, Managem will own a 35% stake in the exploration licenses Blocks 64 a-b-c and 66 a-b-c currently owned by Wanbao Mining.
Through this Partnership, Managem and Wanbao Mining aim to expand the existing Gabgaba operation. The Gabgaba (Block 15) expansion project assumes an increase in annual gold production from approximately 60.000 to 200.000 Oz with an estimated capital expenditure of approximately 250 M US Dollars.
Both partners intend to deliver a definitive feasibility study in order to expand the Gabgaba gold mine within 3 years. Managem will remain the operator of the Gabgaba mine and project. As part of its commitments under the terms of the Partnership Wanbao Mining will be providing the requisite assistance in securing up to 70% of the project funding.
The goal of the Partnership is to capitalize on the vast untapped exploration potential embedded within the existing licenses and develop another gold mining operation within 3 years with projects ultimately owned on a joint, 50/50 basis. Wanbao Mining has agreed to fund up to 30 M USD of exploration and evaluation expenditures and to conduct the exploration work as the operator with co-management of Managem on the licenses subject to the partnership, the same source added.
Managem has a long-standing track record of successful operatorship and presence in Sudan and the newly established partnership with an experienced and committed partner, such as Wanbao Mining, provides an even stronger base for future growth in gold production within and beyond the existing licenses of both partners in the country with unparalleled untouched potential.
Chairman and CEO of Managem, Imad Toumi stated that ”today, we give new impetus to our growth strategy in Sudan by bringing forward the development of a large-scale gold project in Block 15, with a target production of 200.000 Oz per year in the medium-term, in addition, to strengthen our exploration efforts for a new mining project in the other Blocs.”
”I am convinced that this new strategic cooperation, based on trust and mutual respect, will have a positive impact on both our companies and will lead to a multi-million-ounce gold mining operation in Sudan,” he said.