(Ecofin Agency) - Since 2017, Sodim has had three joint venture partners on the Afema gold project, including Australia's Turaco Gold. The Israeli company recently signed an agreement with Turaco Gold to develop the project and received an immediate payment of $14.2 million in return.

On November 27, Turaco Gold is raising its stake in the Afema gold project in Côte d'Ivoire from 51% to 80%. The Australian miner announced the related deal on November 27. Under the agreement, Turaco Gold will pay $14.2 million to Sodim, the project’s original owner. Sodim, an Israeli firm, had been looking for the right joint venture partner for this 2.5 million-ounce project.

Agreement for @TuracoGold to Increase #Afema Interest to 80%#ASX announcement ?: https://t.co/roFD9FNDbu#CoteDivoire #gold #exploration ??$TCG pic.twitter.com/pfPiLeToph

— TuracoGold (@TuracoGold) November 27, 2024

Following a deal inked with Sodim in 2017, Teranga Gold acquired 70%0 of the Afema gold project in exchange for conducting exploration work. However, this agreement was not finalized until Teranga was acquired by Endeavour in 2021, and no drilling took place during that time. Ultimately, Turaco Gold took over Endeavour Mining's rights and obligations through an agreement sealed in November 2023.

Under this new partnership, Turaco is fully responsible for developing the Afema project until a decision is made regarding a gold mine’s development. At this stage, Sodim can either contribute to financing in line with its 20% stake or decide not to invest. If Sodim chooses not to invest, its stake will convert into a 1.5% royalty on net smelter revenues from the future gold mine.

Emiliano Tossou