Appian backs Atlantic Group’s buyout of Barrick mine with $150M funding

[Ben Graham]

Appian Capital Advisory said on Wednesday it has provided a $150 million financing package to support the Atlantic Group’s buyout of a major gold mine from Barrick Mining (TSX: ABX, NYSE: B).

In October, Atlantic Group — one of Africa’s leading private diversified holding companies — announced that it would acquire Barrick’s interest in the Tongon mine in Côte d’Ivoire in a deal worth up to $305 million. The transaction closed earlier this week, with Barrick receiving a $192 million cash payment, plus potentially another $113 million in cash payments tied to the price of gold and resource milestones.

Appian said its funding package will include a commitment to a senior secured debt facility and a gold stream agreement. Meanwhile, Atlantic Group will implement a downside gold price protection program as part of this financing to de-risk Tongon’s cash flows.

Extended gold mine

The deal marks Appian’s fourth credit investment in the gold sector in 2025. The Tongon mine had been one of Barrick’s main assets in Africa. Since entering production in 2010, it has contributed more than $2 billion to the Ivorian economy through taxes, infrastructure projects, salaries and local supplier payments.

The operation was originally slated to close in 2020, but Barrick was able to extend its mine life multiple times through successful exploration. According to Appian, the project still has “significant upside potential” with an exploration program planned across a 2,136 km² land package covering five concessions.

Based on Barrick’s estimates, the site currently hosts proven and probable reserves of 620,000 oz. and measured and indicated resources of 700,000 oz.

“We are pleased to support Atlantic Group in its acquisition of Tongon gold mine, which offers strong potential for resource growth and extended mine life,” Michael Scherb, founder and CEO of Appian, stated in a press release.

“The mine has a strong operating and production track record, substantial exploration potential, and is meaningfully contributing to the Côte d’Ivoire economy, making it an excellent fit within our global portfolio,” he added.

In 2025, the Tongon mine is expected to produce around 140,000 oz. of gold, a similar output to last year.