Australian gold company Perseus Mining is exiting Sudan’s mining sector after agreeing to sell its part in the Meyas Sand Gold Project (MSGP) for around $372 million, as the country’s civil war continues to derail significant investment plans.
The business has inked a share purchase agreement to sell its 70% stake in the project in northern Sudan, with Perseus expecting to collect approximately $260 million from the sale.
The transaction shows increased hurdles for foreign companies working in Sudan since the crisis began in 2023.
The property is located around 900 miles north of Khartoum, near the Egyptian border, within Sudan’s Block 14 mining concession, an exploration area of approximately 1,000 square kilometers.
The deposit contains the Galat Sufar South and Wadi Doum possibilities, which are among the most promising undeveloped gold deposits in the region.
Perseus acquired the site in 2022 when it purchased Orca Gold, allowing the business to construct what could have become one of Sudan’s greatest modern gold mines.
Geological investigations show that the project holds around 2.85 million ounces of probable gold reserves and 3.34 million ounces of measured and indicated resources.
However, the outbreak of the Sudanese Civil War (2023-present) has significantly impacted the country’s investment climate.
The fighting between Sudanese Armed Forces and Rapid Support Forces has destroyed infrastructure and interrupted supply routes, making the implementation of large-scale mining operations more problematic.
Although the Meyas Sand site has remained relatively safe because to its distant desert location, the overall security situation has hindered logistics, funding, and long-term building planning.
Perseus’ Chief Executive Officer Craig Jones stated, “Perseus continues to believe that the MSGP is a high-quality gold project. Perseus conducted a strategic evaluation of MSGP due to the ongoing armed situation in Sudan, which hindered the organization’s ability to advance development at a suitable scale.
The sale is a significant move for Perseus in terms of portfolio optimisation, allowing resources to be allocated to core assets and growth strategy. Matrix Group is a proven development partner with a vision for the MSGP that is consistent with Sudan’s development ambitions.”
Under Sudan’s mining system, the government keeps a 20% ownership in the project, while local partner Meyas Nub Multi-Activities Company controls 10%, leaving Perseus with the majority holding, which is now being sold.
Perseus, which operates gold mines in Ghana and Côte d’Ivoire, can now focus on locations with reduced geopolitical risk since Sudan’s political and security environment remains unpredictable.