Future Global Resources to acquire 90% stake in Ghana’s Bogoso-Prestea gold mine for US$95m

GHANA – Future Global Resources Limited, the mining subsidiary of Blue Holdings Investment Group, is set to acquire a 90% stake in Ghana’s Bogoso-Prestea Gold Mine for US$95 million.

This is after the mining company entered into a binding agreement with Golden Star Resources which will see Golden Star resources cede its 90% stake in the mine.

A report by Ghana Web revealed that under this transaction, Future Global resources will purchase the stake for US$55 million with a further contingent component of up to US$40 million.

“We are pleased to announce the sale agreement for Bogoso-Prestea as this brings fresh focus and investment capacity to the asset,” Andrew Wray, President and Chief Executive Officer of Golden Star, commented.

Wray further explained that the sale will enable Golden Star to concentrate its financial and technical resources on accelerating the delivery of value from Wassa.

This according to Wary was especially important to Golden Star given that the Wassa mine continues to develop into a large-scale, long-life and cash generative underground mine.

The Transaction is anticipated to close by no later than end September this year, upon satisfaction of the condition’s precedent set forth in the Agreement.

These include approval of the relevant Minister in Ghana and the restructuring of the Royal Gold Streaming Agreement and Macquarie loan facility.

The staged payments are meant to ensure Future Global Resources focuses investment capacity on the asset itself while providing Golden Star with exposure to its long-term growth potential.

Golden Star, Future Global Resources and RGLD Gold AG are currently in advanced discussions to amend the stream agreement that would see a separation of the obligations under the agreement as between the Wassa and Bogoso-Prestea mines.

Ghana Web revealed that this discussion is however subject to the completion of terms, negotiation of definitive agreements and receipt of board of directors’ approvals.

“FGR is delighted to acquire 90 percent of the Bogoso-Prestea Gold Mine as our first production asset,” Glenn Baldwin, Chief Executive Officer of Future Global Resources said.

“FGR is looking forward to engaging with the workforce, communities, and Government of Ghana, developing constructive and sustainable partnerships.”

Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals and insights from Africa’s business, economy and more. SUBSCRIBE HERE

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.