The Minerals Income Investment Fund (MIIF) is redesigning its strategy to list its wholly-owned subsidiary, Agyapa Royalties, on the London Stock Exchange and the Ghana Stock Exchange.
The listing of Agyapa on the London Stock Exchange has been slated for the last quarter of this year.
The MIIF has been adjudged the best financial institution in the mining sector by France-based publication, Forbes Monaco.
Forbes took cognisance of MIIF’s strategic acquisition of over 14 million shares and about 4.65 per cent stake in Asante Gold Corporation, a Canadian and Frankfurt-listed gold producing company which operates in Ghana.
The acquisition, together with the government’s carried interest and existing Ghanaian shareholders, would increase shareholding to more than 25 per cent, the first the multilisted international gold mining company has invested in the country.
Asante is currently in negotiation with Kinross Chirano to acquire 90 per cent of the Chirano Mine which will further increase Ghanaians’ stake in the gold mining sector.
Listing of Agyapa Royalties
Agyapa is a gold royalties company, 100 per cent owned by the Minerals Income Investment Fund.
The Chief Executive Officer (CEO) of MIIF, Edward Nana Yaw Koranteng, said the intention of the company was to list up to 49 per cent of Agyapa on the London Stock Exchange and the Ghana Stock Exchange.
“We envisage raising between $450 million to $700 million from the initial public offering (IPO) which proceeds shall be invested in infrastructure and other social amenities, particularly in mining communities.
“Agyapa, being incorporated in the UK and listed on the London Stock Exchange, provided the opportunity to leverage its balance sheet to raise cheaper funding with less obstacles to further invest in other royalty companies and leading gold mining companies across the globe with Ghanaians as ultimate beneficiaries”, he said.
Mr Koranteng also expressed the confidence that in view of current geopolitics, global economic recessionary trends and demand for gold and equities of gold royalty companies, Agyapa’s market value upon listing would shoot up.
By listing on the London Stock Exchange, he said, “we will achieve the highest levels of transparency and control required for any listing in the world.”
“We are ready to engage all stakeholders on how we move Agyapa listing forward after responding to all the issues raised by Parliament,” Mr Koranteng said.
“The proposed programme which would inject over $400 million into the small-scale mining sector over a period of 10 years is in line with actualising President Nana Akufo Addo’s vision of formalising the smallscale mining sector, encouraging environmentally sustainable mining and creating Ghanaian gold mining champions,” Mr Koranteng said.
“We are determined to build Africa’s biggest Minerals Fund with $500 million assets under management (AUM) by 2025 and $1 billion by 2027,” he said, adding that the company had an exciting pipeline of projects and a plan to invest for the country’s future.
Mr Koranteng further said that MIIF’s $20 million investment in Asante Gold, operators of the Bibiani Mensin Gold mine, would see an uptick following the pouring of first gold in the third quarter of this year.
MIIF is a sovereign minerals fund mandated by the amended Minerals Income Investment Fund Act 2018, (Act 978), to maximise the value of dividend and royalties income accruing to the country in a beneficial, accountable and sustainable manner.
It is also to monetise the country’s mineral wealth in a manner which will bring long-term value to Ghana.
MIIF has 100 per cent ownership of Agyapa Royalties Company, the only state-owned gold royalties company in Africa.