Guskin Gold has announced that it has entered into a Joint Venture and Partnership Agreement with Ensuro Group of Companies Limited (EGCL) for the exploration, development, exploitation and commercial production and operation of the Tepa gold project.
The mining concession for the project covers a total surface area of fifty (50) acres and is located near Nfante in the Ahafo Ano District of Ghana. Ensuro Group of Companies Limited are the licensed leaseholders of mining and mineral rights owners of the Tepa Concession.
The mining area is part of a Mining Programme initiated by the Ghana Government in collaboration with the Minerals Commission, a statement signed by the company’s chief executive officer, Mrs. Naana Asante highlighted.
“Per the JV agreement, EGCL granted Guskin Gold Ghana an exclusive seventy percent (70%) ownership interest in the Tepa Concession for the purpose of commercially producing alluvial gold from the property”, the statement noted.
As consideration for the Partnership, the Company will provide all financing in accordance with a work program and budget necessary to extract ore. This would be done in addition to conducting all operational activities relating to the further development and exploitation of the Tepa Concession.
Additionally, the Company is required to make an advance to Ensuro Group of Companies Limited, an amount of Three Hundred Thousand (GHS300, 000) Ghana Cedis, which is expected to be repaid from the initial monies earned from the Tepa Concession.
Two Joint Ventures Agreed upon within two years
The Company has already begun the due diligence work program and report to assess the extent of the alluvial gold plain as well as pitting with an excavator to determine gravel and recovery characteristics, and expects the reports to be completed in the coming week.
This marks the second Joint Venture (JV) within the last two years which Guskin Gold has secured to operate mining concessions in Ghana. In June 2021, the company announced a JV with Danampco Company Limited for the exploration of gold and other precious metals.
Based on the agreement, the Danampco Company granted Guskin Gold an exclusive 70 percent ownership interest in the Kukuom Shewn Edged Pink Concession. Unlike the Tepa Concession, the Kukuom Concession covers a total surface area of 156 square kilometers and is located between the cities of Goaso and Bibiani in the Ahafo District of Ghana.
Under the agreement, Guskin Company was required to pay a total amount of five hundred thousand (500,000) restricted common shares of the Company’s common stock, at a per share valuation of $1.00 per share. These shares were issued based on certain milestones, which are set forth in the JV Operating Agreement.
The Kukuom Concession is located in the highly renowned Sefwi-Bibiani gold belt. Known gold producers including Newmont, Kinross, Anglogold Ashanti and Asanko Gold, and are all within 100km of the Kukuom project area.
Historical production in the Sefwi-Bibiani gold belt include Newmont’s world class Ahafo Mine with over 17 million ounces of gold, Kinross’ Chirano Mine at 5 million ounces, and the historic Bibiani Mine with 7 million ounces.
READ ALSO: Uncertainty Surrounding Fiscal Correction Prevented an Upgrade in Ghana’s Ratings- S&P
