Private equity group Ibaera Capital GP has signed a joint venture (JV) agreement to acquire up to 47.5% in Azumah Resources’ Wa Gold project in Ghana, West Africa.
Under the terms of the agreement, which will be executed in a two-phase manner, Ibaera needs to pay $13.5m over two years in exchange for the interest.
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Through the investment, Azumah aims to enhance gold resources and reserves above the existing 2.1Moz and 624,000oz respectively.
The parties are also targeting a revised feasibility study within two years in order to secure funding and develop the project, which has a proposed 90,000oz per year gold operation plan.
Azumah Resources managing director Stephen Stone said: “This transaction represents a game changer for the company and another important step in unlocking fundamental value and achieving a market rerating.”
Ibaera can initially earn the right to acquire a 42.5% interest after spending $11.25m.
In the event of insufficient funds to achieve the objectives of the JV, Ibaera needs to solely fund the remaining $2.25m to earn a further 5% interest to take its total interest in the project to 47.5%.
The parties will thereafter jointly work towards arranging funds for project development activities with regard to the project.
