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NEW YORK - Blue Gold Limited (NASDAQ:BGL), a $896 million market cap mining company currently rated as financially "GREAT" by InvestingPro, 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 Government of Ghana retaining 10% ownership.
According to the company’s press release, the proposed transaction would involve Blue Gold issuing shares worth approximately $26.25 million based on a $35 per share price. The deal includes potential additional payments of up to $45 per ounce of confirmed gold (capped at 6 million ounces) and up to $55 per ton of confirmed copper (capped at 4 million tons) as resources are verified through independent reports. The company, trading at a P/E ratio of 13.15, has demonstrated remarkable growth with revenue surging over 860% in the last twelve months to $291.94 million.
The Mampon mine reportedly contains 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.
If completed, this acquisition would add to Blue Gold’s existing assets in Ghana, including the Bogoso-Prestea Mine which the company acquired in 2024 and which holds 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.
The company noted that there is no assurance the transaction will be consummated on the terms set forth in the non-binding term sheet or at all. According to InvestingPro analysis, Blue Gold appears undervalued at current levels, with 12 additional exclusive insights available to subscribers. The company’s next earnings report is scheduled for September 24, which could provide further clarity on the acquisition progress.
Blue Gold Limited describes itself as a gold development company focused on acquiring mining assets across global jurisdictions while also developing asset-backed digital instruments. Visit InvestingPro to discover more undervalued opportunities in the mining sector and access detailed financial analysis tools.
In other recent news, Blue Gold Limited has signed a non-binding term sheet to acquire a 90% stake in the Mampon Gold Mine located in Ghana’s Ashanti Gold Belt. The remaining 10% will be held by the Government of Ghana. The acquisition involves issuing shares valued at approximately $26.25 million, with potential additional payments based on confirmed resources. The company is also making strides in blockchain technology, forming an Advisory Board for Blockchain Evolution to support digitizing real-world assets, including gold. T. Jack Williams, an expert in electronic gift cards and cryptocurrency liquidity solutions, was appointed as the first member of this advisory board.
Furthermore, Blue Gold has partnered with TripleBolt Technology LLC to develop a gold-backed digital token. The proposed Blue Gold Coin (BGC) will be supported by forward delivery contracts for up to 1 million grams of gold from Blue Gold’s mining assets. In another development, following its Nasdaq listing, Blue Gold is exploring acquisition opportunities in West Africa and Latin America. The company is particularly interested in gold assets that are either producing or near production. These recent developments highlight Blue Gold’s strategic focus on expanding its operations and leveraging new technologies.
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