Bobby Banson
Mining services firm, Engineers and Planners (E&P), has defended its acquisition of Azumah Resources Ghana Limited, insisting the transaction was a private deal that followed due process.
The company’s lawyer, Bobby Banson, told Joy Business that the acquisition did not require government approval beyond the no-objection letter already secured from the Minerals Commission.
His comments come amid the rejection of the takeover by Azumah Resources Ghana and questions from some industry players about the takeover, particularly in the absence of an official government statement.
“Under the Minerals and Mining Act, before you acquire any interest in a company that has been granted a lease, you must get a no-objection letter from the Government of Ghana, acting through the Minerals Commission or the Ministry of Mines,” Mr. Banson explained.
“E&P has acquired that no-objection letter. As far as the acquisition chain is concerned, that is the rule of the Government of Ghana acting through the relevant agencies,” he noted.
He stressed that the state had no direct shareholding in Azumah Resources but would, by law, hold a 10 percent free-carried interest only after production begins.
The dispute stems from an earlier arrangement between the two companies. E&P explained that Azumah Resources approached it for financial support after struggling to meet tax obligations to the Ghana Revenue Authority (GRA) and cover operational expenses.
E&P said it stepped in, paying workers and covering monthly expenditures while negotiating a takeover deal.
The initial agreement reportedly required a $50 million payment by the end of June 2024.
However, with Azumah’s overseas directors finalising approvals close to the deadline, E&P requested an extension to December 2024, which was accepted.
According to E&P, but by December, Azumah’s directors, encouraged by rising global gold prices, pulled back from the agreement.
E&P maintains, however, that by then it had already spent significant sums supporting Azumah Resources and had also completed the necessary transfer of equity at the Registrar of Companies.
The firm insists that assets such as the Sankofa and Black Volta concessions are now legally in its name.
“It is not as if the government of Ghana had shares. This was a private acquisition between two registered entities, and all statutory requirements were duly followed,” Mr. Banson explained.
E&P has thus urged creditors to come forward with evidence of Azumah Resources’ indebtedness to them and not hide behind PR companies to issue statements.
“All liabilities inherited will be paid, including debt owed by Azumah Resources Ghana Limited fund managers pretending to be owners and hiding behind PR companies to issue statements. The takeover has been completed, and the share transfer from the Ghanaian owners has been completed,” he said.
A Daily Guide Report