$150M Boost for Atlantic Group’s Acquisition of Tongon Gold Mine

The announcement of Appian Capital Advisory’s commitment of 150 million dollars to support Atlantic Group’s acquisition of the Tongon gold mine marks a significant development for Côte d’Ivoire’s mining landscape. This financing package underpins a transaction worth up to 305 million dollars and reflects growing investor confidence in the long term potential of West African gold assets. The structure of the deal, which includes both upfront and contingent payments to Barrick, demonstrates a balanced approach that rewards operational continuity while accounting for future resource and price variability.

A key feature of the financing arrangement is Appian’s combination of senior secured debt and a gold stream agreement, which provides Atlantic Group with both capital efficiency and predictable revenue structures. The inclusion of a downside gold price protection program further stabilizes the mine’s expected cash flows, which is especially important in a commodity environment prone to volatility. For Barrick, the 192 million dollar upfront payment, supplemented by up to 113 million dollars in contingent consideration linked to gold price thresholds and resource expansion milestones, ensures value capture even after divesting the asset.

Operationally, Tongon stands out as a long life mine that has already contributed more than 2 billion dollars to Côte d’Ivoire’s economy since 2010. Its mine life has been extended multiple times due to successful exploration campaigns, highlighting its geological prospectivity. The new owners plan to intensify exploration across a sizeable 2,136 square kilometre land package, supported by current reserves of approximately 620,000 ounces and 700,000 ounces of measured and indicated resources. Appian has expressed confidence in further resource growth potential and an extended mine life, and with expected 2025 production steady at around 140,000 ounces, the asset appears well positioned for operational continuity.

The strategic implications for Côte d’Ivoire and the broader African mining sector are substantial. Increased capital inflows, renewed exploration activity, and a more innovative financing structure could stimulate additional foreign investment into the region’s gold industry. If resource expansion materialises as anticipated, the Tongon mine could further strengthen local economic development through job creation, fiscal revenues, and supply chain growth. This acquisition therefore has the potential to deepen investor participation in West Africa’s mining sector, reinforcing the continent’s position as a competitive destination for long term gold investment.

Mini Glossary

• Senior secured debt: A loan backed by specific collateral, giving lenders priority in case of default.
• Gold stream agreement: A contract where an investor provides upfront financing in exchange for the right to purchase a portion of future gold production at a fixed price.
• Downside price protection: A risk management tool that limits financial losses if commodity prices fall.
• Measured and indicated resources: Geological estimates of mineral quantities with varying degrees of confidence based on sampling and analysis.
• Contingent payments: Additional payments triggered only if predefined conditions, such as commodity prices or resource increases, are met.

Editor: Vural Burç ÇAKIR