In return for a 30 percent interest in the enlarged group, La Mancha has entered into a binding agreement to contribute $63 million and a 55 percent stake in the Ity mine.
The new partnership, which is subject to regulatory and shareholder approval. is anticipated to expand annual production up to 580,000 ounces of gold per year.
“In 2012, our shareholder entrusted us with growing his US$500 million investment in La Mancha,"
Sebastien de Montessus, CEO of the La Mancha Group, said.
"Today, upon completing our portfolio restructuring with the third transaction since the start of the year, I am proud to demonstrate that we have created value in an environment where gold equities and the gold price have declined by over 65%
and 30% respectively since the privatization in 2012."
This transaction completes La Mancha 's portfolio restructuring and positions the company as a leading gold private investor with 31 percent stake in Evolution Mining, the second largest Australian gold producer and a 30 percent holding in Endeavour Mining, a top five African gold producer.
La Mancha’s portfolio restructuring strategy was initiated earlier this year with the strategic alliance with Evolution Mining and the sale of its Sudanese mine, Hassai, as announced on April 20.
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