Allied Gold Corporation (AGC) is nearing the completion of its transition into a subsidiary of the Chinese mining group Zijin Gold. The company has confirmed that the operational schedule for its project in Ethiopia will remain unaffected by this acquisition.
AGC, a Canadian firm listed on both the Toronto Stock Exchange and the New York Stock Exchange, has signed a definitive agreement for Zijin Gold International Company Limited, which is listed on the Hong Kong Stock Exchange, to acquire the entire company in a deal valued at USD 4 billion.
In a recent statement obtained by Capital, AGC assured that the Kurmuk Gold Mine PLC project, located in the Kurmuk Wereda of the Assosa Zone in the Benishangul-Gumuz Region—750 km west of Addis Ababa—will proceed as planned and will not experience delays.
On Thursday, February 5, AGC clarified that the transaction involves a corporate-level share acquisition rather than the sale of individual assets.
“Allied Gold’s operations and development projects in Ethiopia (Kurmuk), Mali (Sadiola), and Côte d’Ivoire (CDI Complex) will continue to function under their existing legal, regulatory, and contractual frameworks after the transaction is completed,” the company stated.
AGC further explained that the Kurmuk Gold Project has not been sold or transferred as a standalone asset. Kurmuk Gold Mine PLC remains an Ethiopian-incorporated entity operating under a valid Mining Development Agreement and in accordance with Ethiopian law.
“The only change resulting from the transaction is the ultimate ownership of the parent company, AGC.”
The company emphasized that the acquisition does not alter Ethiopia’s legal, fiscal, or economic rights concerning the Kurmuk project, which continues to be governed by Ethiopian law and the Mining Development Agreement.
Under the current framework, the Ethiopian government holds a 7% free-carried interest in the project, along with royalties, taxes, duties, and other statutory payments.
Industry experts noted that both Allied Gold and Zijin Gold are publicly listed companies subject to rigorous disclosure, governance, and compliance requirements in Canada, the United States, and Hong Kong.
“As a result, the transaction has been publicly disclosed through regulated stock exchanges and is subject to shareholder and court approvals, as well as regulatory reviews in multiple jurisdictions, including Ethiopia,” they told Capital.
“The process is being conducted transparently, with all necessary notifications and approvals pursued in accordance with Ethiopian law and international best practices.”
AGC confirmed that the development timeline for the Kurmuk project remains unchanged. Technical work, permitting, and development activities are proceeding as planned, with no disruptions to project execution, staffing, or local community engagement.
Sources familiar with the situation, including experts from the Ministry of Mines, informed Capital that the Kurmuk project is expected to be inaugurated in the coming months.
They also indicated that Zijin Gold’s entry into Ethiopia’s mining sector is a positive development, serving as a catalyst to attract other major international players to explore opportunities in the country’s mining industry.
“Zijin Gold, as a global mining operator with extensive international experience, has expressed its intention to collaborate closely with Ethiopian stakeholders to responsibly advance the Kurmuk project over the long term,” AGC added.
It is important to note that when Allied Gold fully acquired Kurmuk Gold Mine PLC in 2023 from its previous owners, the company became a fully public entity with shares traded on major North American stock exchanges.
Experts have pointed out that the public nature of the company’s shares differentiates it from operations with more concentrated or private ownership structures.
AGC’s statement also highlighted that in 2023, ASCOM, the original Egyptian investor, fully exited its interest in Kurmuk Gold Mine PLC through a negotiated commercial arrangement, transferring it to AGC. “As a result, no former investors retain any interest or involvement in the current transaction.”
