Centamin (gold miner) which is based in Egypt is presently faced with ownership obstacles at its Sukari mine. This leads the company to a space where they are considering changing and expanding geographically in order to further opportunities in Ethiopia. Centamin joined forces with Alecto Minerals (a company focused on exploration and development) in order to achieve the potential opportunities within the African country. This alliance supported both parties’ commitment to recognising and developing projects in a region that is quickly evolving as a highly prospective target, predominantly for gold.
This is possibly a transformative deal for Alecto who validates the work Centamin has completed and the quality of their portfolio in Ethiopia. If the JV agreement is signed, with Centamin’s investment and technical input, it is said that Ethiopia will only gain from this and that the chances of identifying solid as well as significant discovery is highly achievable. The newly formed alliance seems to bring about excitement and faith for both parties involved. LSE- and TSX-listed Centamin also agreed to, as part of the deal, subscribe for 15.6-million shares in Alecto at 1.6p a share for a total consideration of £250 000.
In Ethiopia, Centamin has already gained an interest in 4 exploration licenses through the 2011 acquisition of Sheba Exploration. With a number of challenges to its ownership of the Sukari gold mine since the Mubarak government fell, the company has all the more reason to seek growth and development outside Egypt. The company believes that since the change of regime, Egypt has become a less certain place. The company reported earlier this month that the Supreme Administrative Court of Egypt would, on June 19, hold the first hearing into its appeal against the Egyptian Administrative Court’s October 2012 decision, which declared the company’s exploitation lease for its flagship Sukari gold mine invalid.