Turaco to acquire full ownership of Afema gold project

Turaco Gold, an Australian mining company, has announced it plans to buy the remaining 20 percent interest in the Afema gold project in Côte d'Ivoire from its partner Sodim. The deal, announced on October 27, would make Turaco the sole owner of the project, assuming the state’s non-contributory 10 percent stake is maintained.

Deal requires shareholder approval and includes cash and stock

To complete the acquisition, Turaco will pay $30 million in cash and offer Sodim shares and stock options worth about $33.4 million. This includes $3 million already paid for a three-month option to buy, and an additional $12.5 million if a royalty on future production is repurchased. Further payments may be made if gold resources increase.

Afema gold reserves have grown significantly

The Afema gold project’s resources have increased since Turaco began involvement in 2024. Current estimates are 4.65 million ounces, or nearly 145 tons of gold, compared to about 2.5 million ounces in 2024. A pre-feasibility study from June 2026 suggests the project could produce around 200,000 ounces of gold annually for over ten years.

Construction plans and future production goals

Construction of the project would require an initial investment of $410 million. Turaco aims to complete a final feasibility study by mid-2027, which might change these numbers. A final investment decision is expected afterward, with the company aiming for first gold production in 2029, depending on securing necessary funds.

State’s non-contributory share may change under new laws

The state currently holds a 10 percent non-contributory share in the project, as stipulated by the mining convention. The exploitation permit for the project is valid until 2033. However, the new Mining Code, currently under revision, may allow the state to increase its share by purchasing additional shares directly or through the public company SODEMI.

Similar changes seen in other countries

In Mali, a 2023 mining reform led to renegotiating the terms of some projects authorized under the previous legislation. This suggests that changes in the Mining Code could affect existing projects in Côte d'Ivoire and other countries with similar legal frameworks.