Cyprus-based investment firm Sycamore Mining has signed an agreement with Guinea’s government where it will invest $40 million (£31m, €36m) to redevelop the Kiniero gold mine situated in the east of the country.
Sycamore and three other mining companies had made takeover bids for the mine, which has not been in production since Canada’s Semafo placed it under care and maintenance in 2014 and sold it to New Dawn Mining.
Abdoulaye Magassouba, Guinea’s minister of mines and geology, stated that Sycamore was the winning bid, and an outline agreement has been signed.
The deal requires Sycamore to set up a Guinea entity to deliver a feasibility study within 180 days, after which the government will grant a mining licence.
The mining investment firm will also need to immediately inject $5 million into the Guinea entity and eventually invest $35 million more towards exploitation and potential extension of the mine.
Sycamore Mining Chief Executive Matthieu Sharples said it aims to redevelop this plant “as fast as possible”.
The price of gold currently stands at around $1,475.95, and has risen on continued trade uncertainty between the US and China.