Gold Fields finalise Asanko Gold divestment
Gold Fields has completed the divestment of its 45% effective interest in the Asanko Gold Mine to Galiano Gold. The Asanko Gold Mine is a multi-deposit complex in Ghana, with four main open-pit mining areas: Abore, Miradani North, Nkran and Esaase, and multiple satellite deposits, situated on the Asankrangwa Gold Belt, and a 5.8Mtpa carbon-in-leach (CIL) processing plant.
Divestment deal
The transaction included a consideration transaction sale of US$170 million plus a 1% net smelter royalty on future production from the Nkran deposit. Gold Fields received US$65 million in cash and 28,500,000 shares in Galiano as upfront proceeds for the divestment.
The remaining gross proceeds will be settled through deferred and contingent payments, including US$25 million by December 31, 2025, US$30 million by December 31, 2026, and US$30 million plus a 1% net smelter royalty upon production of more than 100 koz of gold equivalent from the Nkran deposit, capped at 447 koz. 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.
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.
