Canada’s Asanko, South Africa’s Gold Fields team up in $203m Ghana JV

South Africa’s Gold Fields (JSE, NYSE: GFI) and Canada’s Asanko Gold (TSX: AKG) are teaming up to develop one of Ghana’s newest gold mine, the Asanko Gold Mine (AGM), is located in the country’s Ashanti Region.

As part of the deal, Gold Fields is acquiring a 50% stake in Asanko’s local subsidiary, which gives it a 90% ownership in AGM, for a total of $203 million, the companies said.

The South African miner is paying $165 million upfront on closing of the transaction and a deferred payment of $20 million, it said.

Gold Fields' local unit, in turn, has agreed to subscribe to a 9.9% share placement in Asanko by way of a private placement of 22,354,657 Asanko shares at a price of approximately.$0.79 cents.

The Canadian gold miner’s main assets in Ghana are the Obotan operation and the Esaase deposit, collectively the AGM, which are situated 100km north of Gold Fields’ Tarkwa and Damang operations along the prospective and under explored Asankrangwa greenstone belt.

 

More to come…

The post Canada’s Asanko, South Africa’s Gold Fields team up in $203m Ghana JV appeared first on MINING.com.

from MINING.com https://ift.tt/2E4HiPJ