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Lithium miner adapts to disrupted mining market

“Wherever there is change, and wherever there is uncertainty, there is opportunity!” – Mark Cuban (entrepreneur, television personality, media proprietor, and investor).

The COVID-19 pandemic, the second Black Swan event in 12 years, has forced many businesses to relook their structures and strategies once again. “Adaptation” “evolution”, “new normal” and “pivot” are now key words incorporated in corporate literature.

A great example of this is Mali Lithium purchasing 80% of the Morila gold mine from Barrick Gold Corporation and AngloGold Ashanti. Mali Lithium has been an active gold explorer in Mali since 2011.

The deal was struck in late August 2020 for a cash consideration estimated at between $22 million and $27 million, depending on closing adjustments, and is subject to certain conditions, including the acknowledgement of the transaction by the state of Mali, which holds the remaining 20% of the Morila gold mine.

Barrick said the decision of the current shareholders to sell their stakes in Morila, which it operates, offered the potential for the mine to continue under a new ownership structure, which would bring access to additional resources and a different approach to how the infrastructure is used to extend the life of operations.

This would allow Barrick to focus on its strategy of discovering, developing, owning, and operating Tier One assets.

The parties are targeting the closing of the deal before end of October 2020.

Read: Morila gold mine to get new owner