1. The government of Ghana gave a lease to Azumah Resources Ghana Ltd in respect of a gold concession in the Upper West Region in 1992. The company is owned by an Australian company.
2. From 1992 till 2022, the company was unable to commence any significant exploration activities on the land, contrary to the terms of the lease agreement.
3. By 2022, the company was indebted to the Ghana Revenue Authority and Minerals Commission to the tune of over $5 million.
4. The Ghana Revenue Authority had obtained a judgment in both the High Court and the Court of Appeal against the company and was going to sell the assets of the company.
5. Gold price was low and so the owners of the company wanted to sell what was left of the company and for the new owner to deal with all the risk with GRA and The Minerals Commission.
6. Additionally, the political instability in neighbouring Burkina Faso posed an elevated risk for any more investments in that sub region.
7. In May 2023, the shareholders approached E&P, offering to sell the project to E&P for $100 million.
8. E&P accepted the offer and the risk, despite the value of the project being estimated at less than $80 million.
9. The Project Acquisition and Development Agreement was signed by the shareholders of Azumah and E&P on 9th October 2023 at the Roman Ridge, Accra offices of E&P.
10. Per the agreement, the $100 million was to be paid in two equal instalments of US$ 50 million — by June 2024 and June 2026.

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