Azumah strikes A$17 million earn-in deal for Ghanaian gold

Azumah Resources Ltd has entered into a binding Term Sheet enabling Perth managed private equity group, Ibaera Capital GP, to earn in two stages up to a 47.5% interest for an expenditure of US$13.5 million in the company’s Wa gold project in Ghana. The objective of the deal is to boost gold resources and reserves above the present 2.1 Moz and 624,000 oz respectively and deliver within a two-year time frame, or less, a revised feasibility study to support the funding and development of the presently proposed 90,000 oz/y gold operation.

Ibaera, through its new closed-end private equity fund Ibaera Capital Fund, is mandated to invest in and develop international gold and base metals projects alongside its Australian corporate owners. Its proposed investment in Azumah’s project is to be funded by US natural resources focused institutional investors with more than $1 billion of funds under management.

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.

“It’s been a tough environment in which to build new projects and having carefully considered several options, we are very pleased to be partnering with Ibaera,“said Stone. “We are looking forward to working with its team of focused and highly regarded mining industry professionals who have a proven capability in discovery and for driving major projects to production whilst employed at WorleyParsons, Fortescue Metals Group and BHP Billiton.

“Shareholders can expect an increased news flow reflecting a range of value adding investment catalysts as the Ibaera funding injection drives an acceleration of activities,” he said.

Azumah recently reported an exploration targeting review by CSA Global that highlights the opportunity to achieve Azumah’s expectations of a lift in resources and reserves. The study identified over 140 target areas of which 18 were designated very high priority (refer ASX released 24 July 2017).