Purchase of shares part of the funds vision, MIFF CEO
Asante Gold aims to become Africa’s top producing gold mines
The Mineral Income Investment Fund (MIIF) has purchased 3.5 percent of the Asante Gold Corporation (Asante) worth US$20 million for 14.4 million ordinary shares, Asaaseradio.com has reported.
According to the portal, the decision by the fund is in line with its vision to be shareholders in high performing mining companies such as the Asante Gold Corporation which purchased Bibiani mine from Resolute Mining Ltd in August 2021.
Chief Executive Officer of the MIIF, Edward Nana Yaw Boateng, speaking on the decision explained, “it was a window of opportunity for us (MIIF management) and the type of long-term asset we are looking for especially before the pour of first gold”.
“We are extremely excited about this investment and particularly delighted at Asante’s ESG performance including the many social interventions and investment programs being undertaken in the neighboring communities by Asante even before first gold and its adherence to strict environmentally friendly practices” Edward Koranteng said.
Chief Technical Officer and Head of Head of Operations of the Fund, Kwabena Barning on his part said, “MIIF decided to take the offering after rigorous due diligence and a detailed technical analysis of the Bibiani mine which has the potential to be one of the highest yielding mines in Ghana”.
Meanwhile, the historic investment deal, according to the MIIF is also to mark its first foray into the global capital markets.
The Asante Gold Corporation (Asante), is a mining exploration and development company listed on the Toronto and Frankfurt Stock Exchanges. It closed a US$100 million round of private placements on the 25 February 2022, for which MIIF acquired 20% at CAD$1.75 per common share (the Offering).
It purchased the Bibiani mine from Resolute Mining Ltd in August 2021 and has since placed it on an accelerated development programme to bring the mine into production by the third quarter of 2022.
Recently, Asante received the Environmental Permit from the Environmental Protection Agency, which gave them the permission to commence project development and production.
Minerals Income Investment Fund
The MIIF was established by Act of Parliament in 2018 to manage the equity interests of Ghana in mining companies.
The Fund is mandated to receive mineral royalties and other related income due Ghana from mining operations and to provide for the management and investment of the assets of the Fund and for related matters.
The MIIF will turn monetize the minerals income accruing to the Ghana in a beneficial, responsible, transparent, accountable and sustainable manner aimed developing and implement measures to reduce the budgetary exposure of the government to minerals income fluctuations.
Meanwhile, MIIF currently has about US$260 million under management after receiving Mineral Royalties since 2020.
Chief Executive Officer of the MIIF, Edward Nana Yaw Boateng