Azumah Resources has secured an earn-in agreement worth around $17 million at the Wa gold project in Ghana.
Perth-based investment group, Ibaera Capital, can gain up to 47.5 per cent of the West African gold project by spending $US13.5 million ($17 million) over two stages on exploration at the site.
According to Azumah, the objective of the deal is to boost gold resources and reserves above the 2.1 million ounces and 624,000 ounces already identified at the site.
The deal also involves the delivery of a revised feasibility study within two years to support the funding and development of a proposed 90,000 ounce a year gold operation.
Azumah managing director Stephen Stone said the transaction represented a game changer for the company and another important step in unlocking fundamental value.
“It’s been a tough environment in which to build new projects and having carefully considered several options, we are very pleased to be partnering with Ibaera,” Stone said.
“We are looking forward to working with its team of focused and highly regarding mining industry professionals, who have a proven capability in discovery and for driving major projects to production whilst employed at WorleyParsons, Fortescue Metals Group and BHP Billiton.”
Azumah expects the earn-in, investment and joint venture agreement to be executed by August 31.
The first stage of the agreement would involve Ibaera spending $US11.25 million within two years to gain a 42.5 per cent interest in Wa. If further funds are required to achieve the JV objectives, Azumah can provide another $US2.25 million and earn an additional 5 per cent of the project.