Gold miner Gold Fields has concluded the sale of its 45% effective interest in the Asanko mine, in Ghana, to Galiano Gold for $170-million plus a 1% net smelter royalty (NSR) on future production from the Nkran deposit.
Gold Fields has received $65-million in cash and 28.5-million shares in Galiano as upfront proceeds for the divestment.
The remaining gross proceeds will be settled through deferred and contingent payments, entailing $25-million to be paid on or before December 31, 2025; $30-million to be paid on or before December 31, 2026; and $30-million plus a 1% NSR to be paid once more than 100 000 oz of gold-equivalent is produced from the Nkran deposit at the mine.
The royalty paid is to be capped at a volume of 447 000 oz.
Galiano reported earlier this week that clashes between illegal miners and security personnel at the Asanko mine had resulted in the death of two security employees and one civilian.