Flagship Gold Corp bets big on Mali in first US investment under new mining code
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Mali has landed its first US mining investment, marking a strategic shift in the country’s approach to international partnerships under its new resource framework. Flagship Gold Corp, a Nevada-based miner incorporated in 2024, has entered into a joint agreement with Mali’s state-owned SOREM to resume operations at the historic Morila gold mine.
The deal, finalized in Bamako in early October 2025, marks a symbolic turning point. It is the first American engagement under Mali’s 2023 mining code, which seeks to rebalance foreign investment with sovereign control. Flagship will acquire equity in Morila SA, the entity that oversees the mine, while contributing capital and technical expertise to restart production.
Morila, once operated by AngloGold Ashanti and Barrick Gold, was one of Africa’s most productive gold mines, with more than 7.5 million ounces extracted since its opening in 2000. Located in Mali’s southern Sikasso region, operations were halted in 2022 due to rising costs and declining output. When Australia’s Firefinch Limited exited in June 2025, the Malian government acquired its 80 percent stake for a symbolic one US dollar, effectively nationalizing the site.
Now, with an estimated 2.5 million ounces of recoverable reserves remaining, the project is seen as central to Mali’s strategy to stabilize its mining sector, which has seen a 32 percent drop in industrial output through August 2025. Gold remains the backbone of the economy, representing nearly 80 percent of export revenue.
A new kind of US entrant in the Sahel
Flagship Gold, led by Chief Executive Ron Slaughter, enters the African mining space amid tightening global supply, with gold prices trading above 4,000 dollars per ounce. While still a new entrant, the firm’s selection by Mali’s transitional government suggests strategic alignment, particularly with the country’s pivot toward more state-led frameworks and reduced dependency on legacy Western operators.
Mali’s new mining code, adopted in August 2023, grants the government up to 30 percent ownership in new projects and eliminates many long-standing tax exemptions. The reforms are part of a broader movement toward resource nationalism across the Sahel. Military-led governments in Mali, Burkina Faso, and Niger have begun asserting greater control over their gold and uranium reserves, often through revised regulatory codes and increased state equity.
This recalibration has caused unease among traditional Western investors, some of whom view the changes as a deterrent. Russian and Chinese firms, on the other hand, have expanded their footprint in the region by embracing state terms and offering parallel diplomatic support. Mali’s agreement with a US company under these new rules signals a more selective approach, where partnerships are welcomed but only on revised terms.
“The deal with Flagship shows that reform and investment can coexist,” said Alousséni Sanou, Mali’s Minister of Economy and Finance. “We are not closing our doors. We are setting fairer conditions.”
Reviving Morila as a test case for reform
Flagship’s legal team has not disclosed financing details beyond public filings, but sources close to the matter suggest the firm is backed by a consortium of commodity-focused private equity groups. The company is expected to take an active role in bringing Morila back online by mid-2026, beginning with site rehabilitation and equipment upgrades.
The choice of Morila as the flagship project is significant. The site is one of the most recognized in West African mining and serves as both a symbolic and material test case for the new mining regime. Success here may influence foreign sentiment and capital flow into Mali, which has seen increasing isolation due to military governance and security challenges.
The move also reflects a shift in US mining interests in Africa. While American capital has traditionally focused on the Democratic Republic of Congo, mounting political and regulatory instability there has pushed companies to explore alternative jurisdictions. Mali, despite its own challenges, is offering a clearer legal structure and well-understood geology.
A model for future investment?
For Mali, the Flagship deal is not just about extraction. It is also about signaling credibility. After months of international concern over the direction of its resource policy, this agreement offers a model for what future partnerships might look like, commercially viable, technically sound, and politically acceptable.
Should Morila’s restart proceed as planned, the mine could return to producing hundreds of thousands of ounces per year within three years, shoring up Mali’s foreign reserves and demonstrating that responsible international capital still has a role to play in the Sahel.
Sources