By Kizito CUDJOE
Azumah Resources has denied reports suggesting that Engineers and Planners (E&P), a wholly Ghanaian-owned mining company, has acquired or invested in its Black Volta Gold Project, located in the Upper West Region.
This follows recent announcements that E&P had secured US$100 million in financing from the ECOWAS Bank for Investment and Development (EBID), with some media reports linking the deal to Azumah’s project.
In a statement, Azumah Resources said: “E&P has not made an offer to fund or invest. E&P has yet to provide any formal offer to Azumah, either to assist in funding the Black Volta Mine or to invest in Azumah. E&P does not own any shares in Azumah.”
The company added it was disappointed by what it described as “misleading public statements” made by E&P, noting these have been visible to mining companies globally and could damage its international reputation.
It said the claims made by E&P “are not supported by law or by fact,” adding that when they sought to maximise the involvement of Ghanaian companies, E&P offered to provide more than US$250 million in funding but has, to date, only managed to provide US$4 million.
Azumah Resources also said it has secured the financial backing of international investors who have developed more than US$10 billion worth of mines globally, and “they will support the construction of this mine.”
To this end, the company said it is open to capital from other local companies and investors and remains focused “on lawful development, transparency, and on building Ghana’s future in partnership with the Government of Ghana and in the best interests of our people.”
The Project Director of Azumah Resources, Rob Cicchini, said, “The future of this project should be in the hands of those who can deliver, not those who cannot. A sale to E&P, without a demonstrated ability to fund the full development of the Black Volta Gold Project, would not be in Ghana’s national interest.”
“Even if E&P could raise the funds to acquire the project, it has already demonstrated, over several years, that it does not have sufficient resources to fund the development. Without that funding, Ghana would suffer. Local communities would suffer. Jobs would be lost. Growth would stall. Azumah Resources is proud to assist the Government of Ghana in delivering real value for all Ghanaians,” he added.
The spokesperson for Azumah Resources, John Mason, also reinforced the company’s position, saying: “Azumah Resources is committed to ensuring this project benefits Ghanaians, led by Ghanaians, with partners who are willing and able to build with us. We have a duty to protect Ghana’s resources for the benefit of all.”
The statement further noted that the company will pursue all available remedies in arbitration and reserves all rights to protect its interests and the Black Volta Gold Project.
“With their reported availability of funds from international banks, Azumah looks forward with great interest to receiving any offer of funding from E&P. However, Azumah takes note of the comments made by E&P in the press and will consider these when evaluating any future potential transaction with E&P,” the company said.
Azumah also expressed appreciation to the Government of Ghana for ensuring that the rule of law has been fairly applied over the years.
“We are confident that this Government will continue in that stead, ensuring investors have confidence when investing in Ghana and ensuring that they are not subject to arbitrary and unfair treatment,” the statement added.
E&P, however, disputes this account and maintains that a binding agreement was signed, for US$100 million to be paid. This was done on October 9, 2023, following an approach from the company’s shareholders.
A statement issued by E&P, signed by its Business Development Director, Mr. Emmanuel Erskine, noted that they accepted the offer and the risk, “despite the value of the project being estimated at less than US$80 million.”
E&P claims that per the agreement, the money was to be paid in two equal instalments of US$50 million by June 2024 and June 2026. “By an email exchange between the parties, the first instalment of June 2024 was amended to December 31, 2024.”
He stated E&P took control and funded the mine with about US$500,000.00 monthly from November 2023 through June 30, 2025.
The statement said that in August 2024, Director of Azumah, James Wallbank, demanded to raise the project price from US$100million to US$300million, citing a rise in gold prices of over 100 percent since the October 2023 contract.
E&P rejected this, insisting on the original price. This caused a dispute, and E&P started arbitration in October 2024, seeking specific performance after Azumah Resources claimed to have unilaterally terminated the contract, the statement clarified.
Among others, the statement also denied any political involvement in the matter stating that it is a purely commercial transaction.
“E&P will continue with the process in line with the agreement for EBID to make payment to the shareholders of Azumah.”
