(East Africa) (4 Minutes Read)
ASCOM, an Egyptian conglomerate affiliated with the government in Cairo, had previously run the Kurmuk project for a decade beginning in 2007 before its license was revoked over security concerns. The license was transferred to Allied Gold Corp in 2017.
Kurmuk Gold has transferred 5.75 million shares to ASCOM Precious Metals Investment Holding BVI, a subsidiary of the Egyptian Asec Company for Mining (ASCOM). A statement released by ASCOM confirms the firm has received the shares through its subsidiary.
Kurmuk Gold Project is located in the gold-rich Benishangul Gumuz regional state. The shares were transferred to APM through Allied Gold Corp, a Canadian firm behind Kurmuk.
ASCOM, an Egyptian conglomerate affiliated with the government in Cairo, had previously run the Kurmuk project for a decade beginning in 2007 before its license was revoked over security concerns. The license was transferred to Allied Gold Corp in 2017.
ASCOM exited the venture in Benishangul by selling 64 percent of its stakes to Allied while retaining 35 percent through its subsidiary, ASCOM Precious Metals (APM). It later announced that it had sold the remainder of its shares.
Allied Gold’s website indicates the Ethiopian government controls seven percent of the gold mining operations, further complicating the opaque shareholder structure behind Kurmuk.
Nonetheless, Allied Gold owes nearly US$ 66 million in deferred payments to ASCOM, which reported a month ago that it expected to collect beginning September 2024. The payments will be made in installments set to end in September 2027, according to the reports.
ASCOM, a conglomerate with strong ties to the Egyptian government, and its parent company Qalaa Holdings will retain stakes in Kurmuk through base erosion and base shifting in the Allied Gold venture. Qalaa Holdings’ ongoing inclusion of Kurmuk Gold in its annual reports indicates the retained Egyptian interest in the firm despite the complicated and opaque ownership structure.
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Egypt’s National Service Projects Organization (NSPO) bought a 20 percent stake in Taqa Arabia last year, equivalent to 27.5 million shares for nearly USD 53 million. Formed in 1979, NSPO is engaged in manufacturing military and civilian products, including in petrochemicals and agriculture, for the Egyptian government. It now has an indirect link to Ethiopia’s Kurmuk Gold via its acquisition of a stake in the Qalaa Holdings subsidiary. The latest transfer of shares means ASCOM retains its stakes in Kurmuk.
