The mining site
FGR Bogoso Prestea Limited, the owner and operator of the Bogoso and Prestea mining leases in the Western Region, has signed an agreement to restructure its ownership that will support the long-term success of the gold mining company.
The completion of the transaction, according to the company, is subject to approval from the Ministry of Land and Natural Resources in Ghana.
The Bogoso Prestea mine has a history dating back to 1912, during which time it has produced over nine million ounces of gold.
However, since 2017 it has been suffering from declining performance, racking-up over $200 million of losses, much of which is owed to local suppliers, government agencies and its workforce.
This led to the introduction of a new owner, Future Global Resources (FGR), in October 2020, who has invested considerable sums over the past three years to help cover these losses.
Speaking on the restructuring initiative, Executive Chairman of FGR, Andrew Cavaghan, said, “The Bogoso Prestea gold mine has the potential to be a Tier 1 gold producing asset”.
He indicated that FGR is also working with the local team to change the mining method underground and re-open surface mining.
He said however, the legacy debts, which pre-date the ownership of FGR, along with unstable industrial relations, have undermined the mine’s ability to attract the further investment it needs to stabilize and grow profitable production.
“These issues will now be addressed by restructuring the ownership of the mine to bring in additional financing and bring this important asset back to full operations,” he added.
“We believe this transaction enables us to unlock the Potential, delivering a multigenerational and sustainable business for our shareholders, our workforce, and the whole community,” he added.
From Emmanuel Opoku, Takoradi