Megado Gold seeks to disrupt one of the world’s oldest industries: gold mining. Too often the riches yielded from gold mined in Africa and elsewhere are enjoyed in far flung fields from where its extracted. From the outset, Megado explicitly endeavours to eschew this practice by creating a gold mining company where success is defined by constructive local stakeholder engagement to assist building communities, while optimizing returns for its shareholders. The first investment will be made in the fast-emerging economy of Ethiopia.
Because Ethiopia is blessed with a lot of gold.
In the country where the first human remains were discovered, gold has been panned for thousands of years. Yet to this day only one industrial scale gold mining operation exists, Lega Dembi. Up until now the jewel of the Adola belt this mine has averaged annual production of some 144,000 ounces. Megado’s principle assets Mormora & Babicho sit neatly on strike slightly to the north and south of Lega Dembi. Mormora holds 203 km2 of land 57km to the south of Lega Dembi; Babicho sits on 136km2 just under 20km to the north. The early reviews conducted suggest these two sites exhibit very similar if not exact replicas of the geological formations found with Lega Dembi.
What’s more, our timing is impeccable. Ethiopia has been one of Africa’s fastest growing economies over the last decade – averaging over 8% growth per annum. Its recently appointed government has been working swiftly to liberalize the economy and bring jobs to its more than 100 million citizens. Mining has been underlined as critical to this strategy and Megado has been identified as a key partner in assisting its implementing implementation, courtesy of a management team with a lengthy history of accomplishments in Ethiopia.
Leading the company will be Dr. Chris Bowden and Michael Gumbley. Chris was responsible for the development of the Dish Mountain Gold Deposit from its initial discovery all the way through its mapping, drilling, modelling, feasibility studies, and coordination of the overall portfolio achieving a resource base approaching 2 million ounces of gold. That’s just in Ethiopia. Chris has had similar successes all over the world. Michael has a long track record of working with local partners throughout Africa and Asia, strengthening operations on the execution of thousands of large-scale development projects. In Ethiopia particularly, he worked with partners around the country assisting deployment of some US$15m per annum.
Together with a strong board and financial backing from Patersons, the team will be listing Megado on the Australian Stock Exchange during the second half of 2019. The funds will be used to continue exploration over the sites and seek new projects in the region. It’s an exciting opportunity in an exciting country. Please be in touch if you would like to learn more.