Galiano Gold acquires stake in Asanko Gold Mine
Galiano Gold Inc. has announced it has acquired stakes in Asanko Gold Mine in Ghana. The firm sealed a binding share purchase agreement with Gold Fields Limited to acquire a 45% interest in the mine.
The total transaction is valued at US $20million in common shares, US $65million in cash, and up to US $85million in future cash considerations. The acquisition positions Galiano Gold Inc. as a robust gold producer in West Africa, consolidating its ownership in one of Ghana’s largest gold mines.
Asanko Gold Mine
The Asanko Gold Mine is projected to yield an average annual gold production of approximately 240,000 ounces from 2024 through 2030, contributing to Galiano’s status as an emerging mid-tier gold producer. The consolidation of the Asanko Gold Mine results in doubled attributable gold production, cash flow, mineral reserves, and mineral resources for Galiano Gold Inc.
The transaction is structured to ensure limited equity dilution, with over 50% of the total consideration deferred and paid following an expected period of elevated cash flows. Galiano Gold Inc.’s CEO, Matt Badylak, views the transaction as a significant value-adding event for the shareholders, transforming the company into a relevant, emerging mid-tier gold producer. After the acquisition, the pro forma ownership structure of the Asanko Gold Mine is Galiano at 90% and the Government of Ghana at 10%.
The transaction is anticipated to close in Q1 2024, subject to regulatory approvals, including those from the TSX and NYSE American stock exchanges, as well as a No Objection Letter from the Ministry of Lands & Natural Resources of Ghana.
