Galiano Gold secures a 45% interest in Asanko Gold Mine, enhancing its gold production in West Africa
Galiano Gold Inc. has officially completed the acquisition of Gold Fields Group Ltd.'s 45 percent interest in the Asanko Gold Mine, a move that marks a significant milestone for the company.
Announced on Newswire Canada, this transaction positions Galiano as a burgeoning gold producer with a strong financial foundation, operating one of the largest gold mines in West Africa.
In accordance with the terms of the acquisition, Galiano issued 28.5 million common shares to Gold Fields, making it the owner of 19.9 percent of Galiano's issued and outstanding shares.
Additionally, Gold Fields will receive future deferred and contingent considerations amounting to up to $85m, along with $65m in cash.
This cash payment corresponds to Gold Fields' effective interest in the joint venture's cash balance. Furthermore, Gold Fields retains a 1 percent net smelter return royalty on the Nkran deposit, capped at 447,000 ounces of gold production.
Following the acquisition, Galiano and Gold Fields have amended their investor rights agreement. This revised agreement includes a 12-month standstill period along with customary rights such as a pre-emptive right for Gold Fields to maintain its current ownership percentage.
Matt Badylak, president and CEO of Galiano, expressed enthusiasm about the acquisition's completion, emphasizing its strategic importance in redefining Galiano as an emerging mid-tier gold producer.
He highlighted the company's commitment to unlocking significant value for all stakeholders in the wake of this transformative deal.
