Gold Fields in a statement said it will also receive a one per cent net smelter royalty on future production from the Nkran deposit, the main deposit at the mine.

The Asanko mine is currently owned 45 per cent each by Gold Fields and Galiano Gold, with Galiano managing the mine while the Government of Ghana holds the remaining 10 per cent.

“The transaction will be settled by Galiano to Gold Fields through a combination of upfront, deferred and contingent consideration,” the statement said.

Giving further details to the settlement structure, it said $85m will be settled with US$65m in cash and $20m in Galiano shares on completion of the transaction; $25m to be paid on December 31, 2025; $30m to be paid on 31 December 2026; and $30m plus a one per cent net smelter royalty to be paid once more than 100koz of gold equivalent is produced from the Nkran deposit.

The royalty, the statement said, is capped at a volume of 447koz.

Gold Fields currently has a 9.8 per cent shareholding in Galiano and the share purchase agreement limits the shareholding that Gold Fields can raise this to 19.9 per cent.

The release said should the market value of Galiano shares be less than the requisite $20m, Galiano will make up the difference with an additional cash payment.

In his comments on the divestment, the interim CEO of Gold Fields, Martin Preece, said, “We are pleased to have concluded this agreement with Galiano.

“It is clear that the committed path forward for the Asanko mine requires consolidated ownership.”

He added that Gold Fields is pleased to realise value for its holding now while providing flexibility to Galiano in the recapitalisation of the mine and resuming mining to maximise its prospects of success.

“Divestment of our interest in Asanko is part of our ongoing disciplined portfolio management process and releases capital for deployment by the company, in line with our other capital allocation priorities,” Mr Preece said.

For the records

In our publication yesterday, on Page 21, we inadvertently stated in our headline that ‘Gold Fields to decide the fate of Asanko gold mine’ when the company had already divested its stake in Asanko.

 The error is deeply regretted.