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Natural resources

Landmark Investment Secured for Ghana's Black Volta Gold Project

Strategic Insights

— 2 min read

Ghana's Engineers and Planners (EandP) has secured a significant US$100 million investment facility from the ECOWAS Bank for Investment and Development (EBID) to acquire and develop the Black Volta Gold Project in the Upper West Region. This deal marks a pivotal moment in Ghana's mining history, with renowned business icon Sir Samuel Esson Jonah praising the agreement as a 'watershed moment in Ghana's mining history.' The facility will enable EandP to acquire full ownership of the project and support mine development, with the first tranche of US$50 million expected to be disbursed by June 30, 2024, subject to a 4% penalty due to delayed disbursement.

Key Takeaways:

  • The US$100 million investment facility from the ECOWAS Bank for Investment and Development (EBID) will enable EandP to acquire full ownership of the Black Volta Gold Project.
  • The facility will be disbursed in two tranches, with the first tranche of US$50 million expected to be disbursed by June 30, 2024, subject to a 4% penalty due to delayed disbursement.
  • The deal marks a historical moment for Ghana's mining industry, with Sir Samuel Esson Jonah describing it as a 'watershed moment in Ghana's mining history.'
  • Sir Jonah praised Ibrahim Mahama, founder and CEO of Engineers and Planners, for his vision, resilience, and indigenous ambition.
  • The acquisition is purely merit-based, with no political or personal influences, dating back to 2023.
  • The project is expected to redefine Ghanaian participation in the global gold economy.
  • Ghanaian owned mining companies can derive maximum profits from their mineral wealth, sending proceeds back to the country to shore up foreign currency reserves.
  • This deal, along with another Ghanaian company taking over the Ghana Bauxite Company, is a promising sign for Ghana's future, provided politics does not thwart efforts made by indigenous companies.

Statistics:

  • US$100 million: The investment facility secured by Engineers and Planners (EandP) from the ECOWAS Bank for Investment and Development (EBID).
  • US$50 million: The first tranche of the facility expected to be disbursed by June 30, 2024, subject to a 4% penalty due to delayed disbursement.
  • 2023: The date when the acquisition deal was agreed upon, making it a purely merit-based deal.
  • 2024: The year by which the first tranche of US$50 million is expected to be disbursed, subject to a 4% penalty due to delayed disbursement.
  • 2026: The year by which the second tranche of the facility is expected to be disbursed.

Sources:

  • Story carried yesterday (exact source not provided)
  • The Chronicle

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