RABAT, June 18 (Reuters) - Morocco’s leading mining firm Managem said on Tuesday it increased its stake in the Tri-K gold project in eastern Guinea Conakry to 85% after acquiring a 30% stake held by its partner Avocet Mining for $21 million.
The acquisition is in line with the group’s strategy to boost its gold production in the continent and strengthen its footprint in the Republic of Guinea, Managem said in a statement.
The remaining 15% stake in the joint venture running the gold project, the Societe Miniere de Mandiana (SMM), is held by Guinean state mining company, SOGUIPAMI.
Tri-K, with more than 1 million ounces of gold reserves, will enable Managem to produce 3.5 tonnes of gold annually, the company said.
Managem, which has announced investments in Tri-K worth $176 million, plans to launch production at the 490-square-kilometer project by 2020 with annual production expected at 120,000 ounces of gold.
Managem, which is controlled by the Moroccan royal family’s holding company Almada, produces gold, silver, cobalt and copper.
The company operates in the Democratic Republic of the Congo, Ethiopia, Gabon, Guinea Conackry, Ivory Coast, Mali, Morocco and Sudan. (Reporting by Ahmed Eljechtimi Editing by Ulf Laessing and Phil Berlowitz)