Ghana’s government is seeking to keep Adamus Resources Limited operating by bringing in fresh capital and restructuring its financial obligations, potentially opening the door to new investors for the troubled gold mine.
The decision followed a meeting at the Presidency that resulted in a 12-month turnaround plan to be prepared by Adamus, the Ministry of Lands and Natural Resources and the Minerals Commission.
Under the plan, a six-member management team, split equally between government and Adamus, will oversee the mine’s recovery. The parties are expected to submit the roadmap to the Presidency within two weeks.
A key part of the restructuring will be addressing Adamus’ outstanding liabilities to the Ghana Revenue Authority, Minerals Income Investment Fund, financial institutions and suppliers, while exploring the entry of additional equity partners.
The move comes days after the government upheld the revocation of Adamus’ Akango, Salman and Nkroful mining leases following an investigation into regulatory and financial breaches.
The latest arrangement therefore represents a shift from taking administrative control of the mine to attempting to restore its commercial viability while protecting the state’s financial interests.
“The road map will also include exploring means to inject fresh capital by inviting additional partners to take up equity in the mining operation,” government spokesperson Felix Kwakye Ofosu said.
A new equity partner could provide funding for operations and investment while giving the government a mechanism to protect future royalty and tax receipts without leaving the asset idle.
