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NEW YORK - Blue Gold Limited (NASDAQ:BGL), a $806 million market cap mining company currently trading at $0.55 per share, announced Wednesday it has entered into a non-binding term sheet to acquire a 90% interest in the Mampon Gold-Copper Mine in Ghana, expanding its operations in the Ashanti Gold Belt. According to InvestingPro analysis, the company’s stock appears undervalued based on its Fair Value metrics.
Under the proposed agreement, Blue Gold will issue approximately $26.25 million in equity valued at $35 per share to secure the majority stake. The deal includes an earn-out structure of up to $45 per confirmed ounce of gold (capped at 6 million ounces) and $55 per confirmed ton of copper (capped at 4 million tons). The company maintains a strong financial position with a "GREAT" overall health score of 3.33 on InvestingPro.
The Mampon Mine is located 80 kilometers north of Bogoso, positioning it for integration with Blue Gold’s existing infrastructure. An independent technical review estimates the mine currently holds approximately 300,000 ounces of Measured & Indicated gold resources.
"This acquisition aligns perfectly with our strategy to consolidate high-potential assets within reach of our existing operations," a company spokesperson said in the press release.
The transaction remains subject to further due diligence, final documentation, and regulatory approvals, with no guarantee the acquisition will be completed on the current terms.
This announcement follows Blue Gold’s acquisition of the 5.1-million-ounce Bogoso-Prestea asset in July 2024. The proximity to the company’s Bogoso-Prestea Mine and carbon-in-leach processing plant could potentially allow Blue Gold to maximize operational efficiency, according to the company statement.
Blue Gold describes itself as working toward becoming a digital gold company that would leverage physical gold reserves to back digital financial solutions.
In other recent news, Blue Gold Limited has announced a significant development with the signing of a non-binding term sheet to acquire 90% of the Mampon Gold Mine located in Ghana’s Ashanti Gold Belt. The Government of Ghana will retain a 10% ownership stake. The proposed transaction involves Blue Gold issuing shares valued at approximately $26.25 million, with additional payments contingent on resource verification, including up to $45 per ounce of gold and $55 per ton of copper. In a separate announcement, Blue Gold has formed an Advisory Board for Blockchain Evolution, appointing T. Jack Williams, known for his work with electronic gift cards, as the first member to aid in digitizing real-world assets. Additionally, the company has partnered with TripleBolt Technology LLC to develop a blockchain-based digital asset backed by gold futures. This partnership aims to create the Blue Gold Coin, leveraging gold’s value with blockchain technology. Following its recent Nasdaq debut, Blue Gold also shared its acquisition strategy, focusing on opportunities in West Africa and Latin America.
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