Kurmuk Gold has transferred 5.75 million shares to ASCOM Precious Metals Investment Holding BVI, a subsidiary of the Egyptian Asec Company for Mining (ASCOM). A statement released by ASCOM this week confirms the firm has received the shares through its subsidiary.

Kurmuk Gold Project is located in the gold-rich Benishangul Gumuz regional state. The shares were transferred to APM through Allied Gold Corp, a Canadian firm behind Kurmuk.

ASCOM, an Egyptian conglomerate affiliated with the government in Cairo, had previously run the Kurmuk project for a decade beginning in 2007 before its license was revoked over security concerns. The license was transferred to Allied Gold Corp in 2017.

ASCOM exited the venture in Benishangul by selling 64 percent of its stakes to Allied while retaining 35 percent through its subsidiary, ASCOM Precious Metals (APM). It later announced that it had sold the remainder of its shares.

Allied Gold’s website indicates the Ethiopian government controls seven percent of the gold mining operations, further complicating the opaque shareholder structure behind Kurmuk.

Nonetheless, Allied Gold owes nearly USD 66 million in deferred payments to ASCOM, which reported a month ago that it expected to collect beginning September 2024. The payments will be made in installments set to end in September 2027, according to the reports.

ASCOM, a conglomerate with strong ties to the Egyptian government, and its parent company Qalaa Holdings will retain stakes in Kurmuk through base erosion and base shifting in the Allied Gold venture. Qalaa Holdings’ ongoing inclusion of Kurmuk Gold in its annual reports indicates the retained Egyptian interest in the firm despite the complicated and opaque ownership structure.

Egypt’s National Service Projects Organization (NSPO) bought a 20 percent stake in Taqa Arabia last year, equivalent to 27.5 million shares for nearly USD 53 million. Formed in 1979, NSPO is engaged in manufacturing military and civilian products, including in petrochemicals and agriculture, for the Egyptian government.

It now has an indirect link to Ethiopia’s Kurmuk Gold via its acquisition of a stake in the Qalaa Holdings subsidiary.

“ASCOM is owed nearly 66 million dollars from Kurmuk. Allied Gold initially agreed to pay the amount. But now, Allied gold has agreed to transfer shares to ASCOM as Kurmuk is facing financial strains in addressing the deferred payments. Kurmuk Gold swapped the money for shares and transferred the shares to ASCOM’s subsidiary,” said an official close to the issue.

The latest transfer of shares means ASCOM retains its stakes in Kurmuk.

Brox Worku, an Allied Gold shareholder and manager of Kurmuk Gold Project, maintains the share transfer is part of an initially agreed-upon arrangement and is not a new deal.

“Kurmuk Gold is 100 percent owned by Allied Gold Corp,” Brox told The Reporter in a brief response, contradicting the initial response. He declined to make further comments.

Brox had previously denied any Egyptian affiliations in Kurmuk’s ownership structure.

Allied Gold claims to hold mining concessions for over 100 square kilometers of land stretching from the Sudanese border to Assosa slated to last until 2041. The area includes places like Dish Mountain, Ashashire, and Tsenge, according to the company website.

Allied Gold plans to begin mining in 2026 with ambitions to extract 290,000 ounces annually, according to the website.