Robex secures Mali OK for Nampala mine deal

Canada’s Robex Resources (TSX-V: RBX) has become the latest mining company to finalize a new agreement with Mali, securing continued operations at its Nampala gold mine. 

The deal incorporates an agreement with the Malian military government in September that increases the state’s stake in the mine to 20% in compliance with new mining code adopted in 2023. The company and the junta also settled all tax and customs claims before 2024 and granted the state priority dividends.

Robex plans to produce 1.4 tonnes of gold per year for a period of eight years, Mali’s Council of Ministers said in a statement  late on Wednesday The company estimates reserves at 17.35 million tonnes with grading 0.7 gram per tonne, the council said.

Most other miners in Africa’s second-largest gold producer, save Barrick Gold (TSX: ABX; NYSE: GOLD), have also inked deals with the junta. Barrick CEO Mark Bristow said Wednesday the company will consider care and maintenance for its Loulo-Gounkoto mine in a month if talks collapse. They’ve been going on since September. 

Shares in Robex gained 1¢ in Toronto by mid-Thursday to $2.34 apiece, valuing the company at $353.7 million. They’ve ranged from $1.15 to $2.95 over the past 52 weeks. 

For sale

Robex has operated the Nampala mine, located about 300 km south of the capital Bamako, since 2017. Growing uncertainty over the regulatory changes prompted the Montreal-based junior miner to announce in August it would sell the mine, but it hasn’t found a buyer. 

Due to “the geopolitical context for investments in Mali and the market for potential buyers,” there haven’t been any reasonable offers, Robex said. 

The company remains committed to shift its focus to neighbouring Guinea, where it is developing the Kiniero project and expects to pour first gold in this year’s fourth quarter.

Mali’s junta has aggressively enforced the new regulations, straining relations with major mining companies besides Barrick, such as Resolute Mining (ASX: RSG; LSE: RSG) and B2Gold (TSX: BTO; NYSE-A: BTG). The new mining code requires international companies to pay higher taxes and cede larger stakes in their assets to the state.