FGR Bogoso Prestea Limited, the owner and operator of the Bogoso and Prestea mining leases, has signed agreements to restructure its ownership that will support the long-term success of the mine. The compleFon of this transacFon however, is subject to approval from the Ministry of Land and Natural Resources in Ghana.
The Bogoso Prestea mine has a proud history daFng back to 1912, during which Fme it has produced over 9m oz 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 introducFon of a new owner, Future Global Resources (FGR), in October 2020, who have invested considerable sums over the past three years to help cover these losses as well as working with the local team to change the mining method underground and re-open surface mining.
However, the legacy debts, which pre-date the ownership of FGR, along with unstable industrial relaFons, have undermined the mine’s ability to aWract the further investment it needs to stabilise and grow profitable producFon.
These issues will now be addressed by restructuring the ownership of the mine to bring in addiFonal financing and bring this important asset back to full operaFons. Further announcements regarding this transacFon will be made in due course.
Speaking regarding the restructuring, Andrew Cavaghan, ExecuFve Chairman of Future Global Resources, said, “The Bogoso Prestea gold mine has the potenFal to be a Tier 1 gold producing asset. We believe this transacFon enables us to unlock this potenFal, delivering a mulF- generaFonal and sustainable business for our shareholders, our workforce, and the whole community.”
