A spokesperson for Allied didn’t immediately reply to an email on Wednesday seeking clarification.
The deal, which the company expects to be closed within weeks, comes as it negotiates a potential $275 million in funding for the company’s Kurmuk gold project in Ethiopia. It’s also working on a $53 million streaming deal this month with Triple Flag Precious Metals (TSX: TFPM, NYSE: TFPM) for 3% of output from the Agbaou and Bonikro gold mines in Côte d’Ivoire.
“Our net asset value on Sadiola is revised slightly lower due to the higher government royalties, ownership on Diba and the one-time cash payment,” Toronto-based Cormark Securities said in a note on Wednesday. “However, the execution of the agreement reduces any uncertainty about government support and will allow for seamless/continued operations.”
Allied stock remains “very inexpensive” on a net asset value assessment with “significant room” for the…
