Galiano completes purchase of Gold Fields' Asanko mine stake
Galiano Gold has finalised the acquisition of a 45% interest in the Asanko Gold Mine in Ghana, consolidating its position as a key player in West Africa's gold mining industry. The deal, announced in December last year, saw the company buying its joint venture (JV) partner Gold Fields’ 45% stake in the Asanko mine for $170m.
Each of the two companies held a 45% stake in the mine through their respective subsidiaries. The Government of Ghana owns the balance, a 10% interest. As per the agreed terms, Galiano issued 28.5 million common shares to Gold Fields, which now holds a 19.9% stake in Galiano.
Additionally, Gold Fields received $65m in cash and will benefit from future deferred and contingent payments up to $85m. The Asanko Gold Mine, one of the largest in West Africa, is now under Galiano's sole operation.
The acquisition is a strategic move to leverage the mine's potential and enhance Galiano's market presence. Under the agreement, Gold Fields retained a 1% net smelter return royalty on the Nkran deposit, capped at 447,000oz of gold production.
This arrangement ensures Gold Fields' continued financial interest in the mine's success. An amended investor rights agreement between Galiano and Gold Fields includes a 12-month standstill period, along with other customary rights.
These rights include a pre-emptive right for Gold Fields to maintain its current ownership percentage. Galiano president and CEO Matt Badylak said: “The closing of the acquisition is a truly formative event that strategically repositions this company as an emerging mid-tier gold producer and we look forward to continuing to unlock significant value for all our stakeholders in the newly transformed Galiano.”
Source: https://www.globaldata.com/