- Ghana government will allocate 75.6 percent of royalties from 16 areas under production or development
- The fund plans to then raise capital by selling 49% of these shares for an approximately USD 500 million on both the London and Ghana stock exchanges in an initial public offering (IPO).
- By offering as much as 49 percent in the IPO, the government also loses the potential benefit of selling additional shares later at a higher price while retaining majority ownership.
Risk and Reward in Ghana's Agyapa Gold Royalties Deal: Eight Points for Consideration
From the Natural Resource Governance Institute
1 October 2020
Key messages
- Under the plan, the government has created a royalty company and assigned a substantial portion of its future gold royalties to this company. It hopes to raise non-debt cash up front by floating almost half its shares in this company on the London and Ghana stock exchanges.
- Further consideration and public consultation might create the opportunity to strengthen the deal for the benefit of Ghana.
