Azumah Resources Clarifies Black Volta Gold Project Sale to E&P Amid $130m Financing Agreement
Director of Azumah Resources, Noel Nii Addo, has provided clarity on the background and progression of the acquisition of the Black Volta Gold Project by Engineers & Planners (E&P), as the two parties, together with the ECOWAS Bank for Investment and Development (EBID), signed a landmark $130 million Acquisition Facility Agreement in Accra on Monday, July 7, 2025.
Speaking at the signing ceremony, Mr. Addo disclosed that Azumah Resources, owned by Ibaera Capital, first approached E&P in 2020 to explore the sale of its stake in the Black Volta Gold Project due to a number of operational challenges, including regulatory hurdles and financial constraints.
“As Director of Azumah, I must give a proper account of how this process unfolded. Azumah reached out to Engineers & Planners at a time when the company faced regulatory and financial challenges. Eventually, after some hesitation, E&P agreed to come on board, and the acquisition agreement was signed in October 2023,” he recounted.
Under the initial agreement, E&P committed to providing monthly funding of $500,000 to Azumah to support the ongoing operations of the project while working towards full acquisition. The total acquisition cost of $100 million was structured into two instalments: the first payment of $50 million was due in June 2024, with the second and final payment scheduled for June 30, 2026.
Mr. Addo revealed that despite some delays in the first payment, E&P continued to honour its monthly funding obligations. He also noted that as per the agreement, penalties would apply in the event of payment delays, reinforcing the commercial nature of the transaction.
Providing further insight, he shared that efforts were initially made to involve Ghana’s Minerals Income and Investment Fund (MIIF) in the financing of the project through a proposed $45 million investment, comprising $30 million in equity and $15 million in royalties. However, with a change in government and to avoid any perceived political entanglements, E&P opted to proceed with the transaction independently.
“E&P’s decision to go solo was to ensure the project remained free from political perceptions. They resolved to execute this project on their own, and over the past two years, they have demonstrated commitment by being the first on site at the mine, conducting extensive legal and financial due diligence, and moving the project forward,” Mr. Addo explained.
Importantly, he highlighted that the transaction goes beyond the mere acquisition of the asset, with an additional funding of up to $245 million needed to develop the mine over a 21-month timeline, setting the stage for the creation of numerous jobs and significant economic impact.
“This is not just an acquisition, it is an acquisition coupled with the full development of the mine. We have received multiple offers over time, but E&P has shown consistency, dedication, and the willingness to see this through. Within 24 months, we are confident that the mine will be operational,” he stated.
Mr. Addo further expressed gratitude to EBID, E&P, and the entire team at Azumah for their perseverance in bringing the deal to fruition despite numerous challenges over the years.
The signing of the $130 million facility – $100 million disbursed immediately and an additional $30 million due in December 2025 – marks a major milestone in Ghana’s extractive sector, with the Black Volta Gold Project poised to become the country’s first large-scale, wholly indigenous gold mining operation.
