Galiano Gold (TSX: GAU) and Gold Fields are ending a joint venture for the Asanko Gold Mine. Galiano will be acquiring Gold Field’s 45% stake in the mine in exchange for a combination of common shares, future cash, an NSR, and the payout of certain cash.

The transaction, which will see Galiano own a 90% interest in one of the largest mines in West Africa, will result in Galiano issuing $20 million worth of its shares to Gold Fields, pay cash consideration of up to $85 million, and issue an NSR of 1.0%, which is capped at 447,000 gold ounces.

As part of the deal, Gold Fields will also receive $65 million in cash, which amounts to its interest in the cash balance of the joint venture.

The Asanko Gold Mine purchase will result in Galiano being the benefactor of the 240,000 ounces the mine is expected to output from 2024 through to 2030 each year, doubling the attributable gold production of Galiano. The mine as a whole has an average all in sustaining cost of $1,063 per ounce, and proven and probable reserves of 2.1 million ounces of gold.

The purchase is slated to close in the first quarter of 2024.

Galiano Gold last traded at $0.87 on the TSX.

Information for this briefing was found via Sedar and Galiano Gold. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.