DAKAR, Oct 9 (Reuters) - New York-based Flagship Gold

Corp has signed a partnership agreement with Mali's state-owned

miner to restart production at the Morila gold mine, the first

U.S. investment under the military-led nation's new mining code,

Mali's government said.

The agreement, signed Wednesday in Bamako, allows Flagship

to acquire equity in Morila SA, which holds estimated reserves

of 2.5 million ounces, Mali's mines ministry said in a

statement. Details of the partnership were not announced.

The mine, located in the southern city of Sanso in Mali's

Sikasso region, was taken over by the state in June after

Australia's Firefinch abandoned operations in 2022 over

declining output and rising costs.

Flagship, incorporated in June 2024, enters Mali amid a wave

of resource nationalism across the Sahel, where military-led

governments in neighboring Burkina Faso, Niger and Guinea have

tightened control over gold, uranium and bauxite assets.

Mali adopted a new mining code in August 2023, boosting

state control by allowing up to 30% ownership in new projects

and scrapping key tax exemptions.

The overhaul has unnerved foreign investors, though Russian

and Chinese firms have deepened their presence through

state-backed deals.

"This is a win-win partnership," Mines Minister Amadou Keita

said.

David Alan Miller of Graubard Miller, legal counsel for

Flagship, said in response to questions about Morila's financing

plans that the company is currently unable to disclose any

information beyond what is publicly available.

Morila, once operated by Barrick and AngloGold

Ashanti ( AU ), is being revived as gold prices surge past

$4,000 an ounce, spurring global competition for high-grade

deposits.

Mali's Economy Minister Alousséni Sanou said the deal

"raises hope" for the country's mining future.

Mali, one of Africa's top gold producers, has seen

investment dip as regulatory crackdowns and insecurity bite.

Industrial gold output fell 32% year-on-year to 26.2 metric

tonnes by end-August, according to government data.