AMN - GHANA: Approval for Wa project funding

Ghana's Minister of Lands and Natural Resources has consented to Azumah Resources' US$13.5 million earn-in agreement for its Wa Gold Project in the Upper West Region of Ghana. The agreement is with Perth-based Ibaera Capital Fund who can earn up to a 47.5% interest in two stages.

Azumah is exploring and developing its Wa project, which hosts 2.1 million ounces grading 1.5 g/t gold. Three main deposits - Kunche, Bepkong and Julie - have been discovered and extensively drilled as well as several satellite deposits.

Azumah's managing director Stephen Stone said, “The rapid approval by the new Ghana Government of the transformational Azumah-Ibaera funding agreement is entirely consistent with its push to re-establish Ghana as West Africa’s preferred destination for exploration and mining.

“Ibaera’s highly experienced and accomplished technical team is now on board and finalising programs and budgets, including for drilling aimed at boosting mineral resources and ore reserves, and ultimately the delivery of a revised blueprint for funding and development of the Wa Gold Project.”

Ibaera, headed by former business development manager at Fortescue Metals Group (FMG) James Wallbank, has now made all of its key appointments who will immediately integrate with the existing Azumah Perth and Ghana based team.

The Ibaera team will include former project study manager and manager of business development at FMG Peter Hairsine; former manager of Strategy and Generative Services for BHP Billiton Mineral Exploration, global geoscience leader for WMC Resources and chairman of the Board of the Centre for Exploration Targeting Dr Jon Hronsky; former exploration manager at FMG Paul L’Herpiniere; and Ibaera’s CFO, Chris Alexander.

Peter Hairsine has been appointed project manager and will report to the Board of Azumah Resources (Gh) Limited, the operating entity for the incorporated joint venture in which Ibaera may earn in two stages over approximately two years, up to 47.5%.

The expanded team has already begun a comprehensive review of the current feasibility study for Wa, a review of existing targets and is also generating new targets.

James Wallbank and Jon Hronsky will join Azumah’s Stephen Stone and Paul Amoako-Atta on the board of Azumah Resources (Gh) Limited.

On September 1, 2017 Azumah executed an Earn-In and Shareholders Agreement (EISA) with Ibaera Capital GP Limited, whereby Ibaera can earn up to a 47.5% interest for an expenditure of US$13.5 million in the Wa project. The terms of the EISA set out the basis for the parties to boost resources, reserves and to deliver a study supporting a decision to proceed to production within the next two years. The EISA, was contingent on the consent of the Government of Ghana.

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