Blue Gold signs non-binding term sheet to acquire Ghana gold mine

NEW YORK - Blue Gold Limited (NASDAQ:BGL), a $896 million market cap mining company with impressive revenue growth of over 860% in the last twelve months, announced Wednesday it has signed a non-binding term sheet to acquire 90% of the Mampon Gold Mine in Ghana’s Ashanti Gold Belt, with the remaining 10% to be held by the Government of Ghana.

According to the term sheet, Blue Gold would issue shares worth approximately $26.25 million (based on a $35 per share price) for the acquisition. The company may make additional payments as Mampon’s resources are confirmed, paying up to $45 per ounce of gold (capped at 6 million ounces) and up to $55 per ton of copper (capped at 4 million tons). According to InvestingPro analysis, Blue Gold appears undervalued at its current trading price of $0.61.

The Mampon gold mine reportedly has an estimated 300,000 ounces of Measured & Indicated gold resources based on an independent expert report completed for the seller. The mine is located 80 km north of Bogoso and its carbon-in-leach processing plant.

This potential acquisition would follow Blue Gold’s 2024 purchase of the Bogoso-Prestea Mine, which has a 5.1 million ounce Measured & Indicated gold resource.

"The Mampon Gold Mine would be an exceptional fit for our strategy," said Andrew Cavaghan, CEO of Blue Gold Limited, in the press release statement. The company’s strong execution is reflected in its GREAT Financial Health Score from InvestingPro, with particularly robust metrics in profitability and growth.

The company noted that there is no assurance the transaction will be completed on the terms outlined in the non-binding term sheet or at all.

Blue Gold Limited describes itself as a gold development company focused on acquiring mining assets across global jurisdictions and developing asset-backed digital instruments.

In other recent news, Blue Gold Limited has made several strategic moves to enhance its operations and market presence. The company announced the formation of an Advisory Board for Blockchain Evolution, with T. Jack Williams, known for his role in developing electronic gift cards, joining as the first member. This initiative aims to support Blue Gold’s efforts in digitizing real-world assets, including gold. Additionally, Blue Gold has partnered with TripleBolt Technology LLC to develop a blockchain-based digital asset backed by gold futures. This planned Blue Gold Coin would be supported by forward delivery contracts for up to 1 million grams of gold, combining gold’s intrinsic value with the efficiency of blockchain technology.

Following its recent debut on Nasdaq, Blue Gold Limited is exploring acquisition opportunities in West Africa and Latin America. The company is targeting gold assets that are either producing or near production, as part of its strategy to expand its mining operations. These developments highlight Blue Gold’s focus on leveraging blockchain technology and expanding its asset base to strengthen its market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.