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Contango in search of partners for Garalo gold project in Mali

Contango Holdings is looking for strategic partners to develop its gold resource at Garalo-Ntiela in southern Mali. The London –listed firm said the move is to aid in paying a first dividend in 2023.

“Discussions over Garalo have been moving forward, leading to confidence that a deal can be reached in the next few months. The “ideal” scenario, would be to find a specialised exploration company to develop the resource. Contango plans to keep a stake in the project once an agreement is reached,” said Executive Director Carl Esprey.

Garalo gold project

Garalo gold project occupies 62.5 square kilometres in the Sikasso region of southern Mali, close to the border with Guinea and about 200km southeast of the capital Bamako. The permit is surrounded by a number of multi-million ounce gold deposits and the region is home to some of the world’s leading gold miners, including AngloGold Ashanti, IAMGOLD, Barrick, B2 Gold, Endeavour Mining and Hummingbird Resources, which has helped to establish Mali as the third largest gold producer in Africa. Contango said in March that the project has a targeted resource of 1.8m to 2m ounces of gold.

Contango Holdings, which has a market cap of about 20m pounds, said in February that it had approaches from potential domestic and international investors for the project. The aim of bringing in a partner, is to minimise the monthly exploration burn from the project.

Signs of a thawing in Mali’s international isolation after a 2021 military coup may make it easier to secure interest. The Economic Community of West African States (ECOWAS) at the start of July lifted sanctions imposed after military rulers proposed a two-year transition to democracy, with a deadline for elections set for February 2024.

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