Galiano Gold to Acquire 45% Stake in Ghana Gold Mine from Gold Fields

By Adriano Marchese

Galiano Gold agreed to acquire a 45% interest in a mine in Ghana from a subsidiary of Gold Fields, setting a foothold in the African mining space.

The Vancouver, British Columbia-based miner said Thursday that it has entered into a binding share purchase agreement with the subsidiary to acquire the stake in the Asanko gold mine.

The company said it will issue $20 million worth of its shares, and that there will be a future cash consideration of up to $85 million and a capped 1% net-smelter return royalty on 447,000 ounces of gold for Gold Fields.

Upon closing of the acquisition, which is expected in the first quarter next year, Gold Fields will also receive $65 million in cash, equivalent to its effective interest in the cash balance of the joint venture.

Galiano expects average annual gold production to be about 240,000 ounces between 2024 and 2030, and it said that this doubles Galiano's attributable gold production, cash flow and mineral reserves.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

December 21, 2023 08:17 ET (13:17 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.