Rabat - Moroccan mining group Managem has announced finalizing the sale of the Oumejrane Mining Company to Purple Hedge Resources Morocco, a private company based in the country.
Purple Hedge Resources Morocco is a fully owned subsidiary of Purple Hedge DWC, a private firm based in the United Arab Emirates.
The deal was valued at $30 million (MAD 301 million), with an additional conditional payment of over $2 million (MAD 30 million) to be made after 12 months, according to a statement from Managem.
Imad Toumi, Chairman and CEO of Managem, noted the significance of the deal in the statement. “The completion of this sale marks an important milestone, with the selection of a strong buyer capable of financing both the acquisition and the development of the Oumejrane mine.”
In addition, he expressed confidence that Purple Hedge DWC, with the support of its investors, “will uphold the high standards of health, safety, and environmental protection that have always been our priority.”
The Oumjrane mine is located in the Eastern Anti-Atlas of Morocco, specifically in the Draa-Tafilalt region. The area boasts numerous mineral deposits like copper-silver and barite, with small scale mining activities.
With the sale of the mining company, Managem could be looking to acquire other exploration projects and focus more on its activities in other African countries. Last month, the company announced the full acquisition of the Karita gold exploration project in Guinea from the Canadian company IAMGOLD.
Purple Hedge DWC is led by an experienced management team that specializes in African mining. The company says they aim to become a major player in copper production in Morocco and across Africa.
It is supported by equity funding from a private investor focused on Africa and financing from a New York-based investment fund with expertise in metals and minerals essential for the energy transition.
The company has expressed commitment to safeguarding the interests of Oumejrane’s employees and ensuring that the mine’s operations continue to meet the high standards set by Managem.
Managem, founded in 1928, operates in eight African countries. It specializes in the extraction, processing, and commercialization of various minerals, including precious metals like gold and silver, base metals such as copper and zinc, and strategic metals like cobalt.