Ghana’s Engineers & Planners exposes greedy Australians

….Wanted US$300 million instead of agreed US$100 million for struggling Azumah Resources after gold price surge

Ghana’s Energy and Projects Limited (E&P) has issued a detailed statement outlining the circumstances surrounding its acquisition of Azumah Resources Ghana Ltd, amid ongoing legal disputes and what it describes as a campaign of misinformation.

In a press release signed by E&P’s Business Development Director, Emmanuel Erskine, the Ghanaian company, yesterday clarified that it had lawfully acquired the gold project located in the Upper West Region from Australian-owned Azumah Resources in a US$100 million agreement signed on October 9, 2023, at E&P’s Roman Ridge office, Accra. Paul L’Herpiniere, Amoako Atta and Hector Nyinaku represented Azuma Resources on the day.

E&P also highlighted the shifting stance of a director at Azumah Resources in response to rising gold prices, despite the company having received substantial financial support from E&P to keep the mine operational during a period of severe financial distress, with assurances that the concession would ultimately be transferred.

Azumah later inflated the sale price from US$100 million to US$300 million, prompting questions over whether it would have reduced the price had gold prices fallen.

According to the statement, the Ghanaian government granted Azumah a mining lease in 1992. However, for three decades, the company failed to begin significant exploration. By 2022, Azumah had accumulated debts exceeding $5 million to the Ghana Revenue Authority (GRA) and the Minerals Commission. Following court rulings in favour of the GRA, the company’s assets were due for sale.

Amid low gold prices and increased security concerns due to political instability in neighbouring Burkina Faso, Azumah’s shareholders sought to divest. In May 2023, they offered the project to E&P for $100 million. Despite the project being valued at less than $80 million, E&P agreed to the acquisition, including all associated liabilities.

The acquisition agreement required payment in two equal instalments of US$50 million, initially due by June 2024 and June 2026, and was later amended to 31 December 2024 for the first tranche.

E&P, immediately assumed control of the project and began funding its operations, reportedly spending an average of US$500,000 monthly since November 2023.

Tensions arose in August 2024 when Azumah director James Wallbank attempted to renegotiate the agreed price, demanding a revision to $300 million, citing a sharp increase in global gold prices. E&P rejected this, insisting on adherence to the original terms.

This disagreement led to arbitration proceedings initiated by E&P in October 2024 and a High Court application in Ghana. In June 2025, the court ruled in E&P’s favour, maintaining the validity of the contract and nullifying Azumah’s purported termination of the agreement.

E&P also confirmed that it has secured a US$100 million facility from the ECOWAS Bank for Investment and Development (EBID) to finance the acquisition, with the official signing of the loan agreement scheduled for July 7, 2025.

Mr Erskine stressed that Azumah’s presence was not required at this ceremony, although its resident directors were in attendance.

Addressing media reports, E&P firmly denied allegations that the agreement was signed after the 2024 elections or that the Ghanaian government influenced the transaction.

“Every milestone, including the acquisition agreement and financing offer, was concluded before the December 2024 elections,” the statement said.

Mr Erskine accused some Azumah directors of attempting to sabotage the transaction to exploit the recent rise in gold prices. “There is a deliberate effort to frustrate E&P’s funding to allow certain individuals to take undue advantage of the asset,” he stated.

Looking ahead, E&P states that it has secured a “No Objection Letter” from the Minerals Commission and intends to proceed with development. The company expects to begin production within 36 months and has called on Ghanaians to rally behind what it describes as a historic first, a wholly Ghanaian-owned entity acquiring a large-scale mining operation.

“This is not politics. It is a purely commercial, arm’s-length transaction. Ghanaians should support their own,” Mr Erskine said.

In a separate statement issued yesterday, John Mason, spokesperson for Azumah Resources Ghana Ltd, contested E&P’s assertions, saying the company had not received any formal offer from E&P to fund or invest in the project.

He did not mention the various sums collected from the E&P and the October 9, 2023, agreement.  

“E&P has not made any offer to Azumah to fund the Black Volta Gold Mine or to invest in Azumah. E&P does not own any shares in Azumah,” the statement read.

Mason said Azumah was committed to developing the mine in a manner that benefits Ghana and its people. “We are confident that this government will continue to uphold the rule of law and ensure investors are treated fairly,” he said.

He also disputed E&P’s financial capacity: “When we sought to maximise Ghanaian participation, E&P offered over US$250 million in funding but has only delivered US$4 million to date. Fortunately, we now have the backing of international investors with over US$10 billion in mining development experience.”

Azumah Project Director Rob Cicchini added: “The future of this project must be in the hands of those who can deliver. A sale to E&P, which has failed to demonstrate sufficient development capital, would not be in Ghana’s national interest.”

Mason stated that the company would continue to engage with regulators and the public transparently and pursue legal remedies through international arbitration. “This matter should be resolved through arbitration, not media stunts. We urge all stakeholders to disregard this week’s staged event and to contact Azumah directly for accurate information,” the statement said.

Mason reaffirmed its commitment to work with the government, the Ministry of Lands and Natural Resources, and the Minerals Commission to ensure that the project is developed in Ghana’s long-term national interest.

However, Mr Erskine’s statement reiterated that “by 2022, the company was indebted to the Ghana Revenue Authority and the Minerals Commission to the tune of over $5 million. The Ghana Revenue Authority had obtained a judgment in both the High Court and the Court of Appeal against the company and was going to sell the assets of the company”.

“Gold price was low, and so the owners of the company wanted to sell what was left of the company and for the new owner to deal with all the risk with GRA and the Minerals Commission”.

“Additionally, the political instability in neighbouring Burkina Faso posed an elevated risk for any more investments in that sub-region. In May 2023, the shareholders approached E&P, offering to sell the project to E&P for $100 million.

“E&P accepted the offer and the risk, despite the value of the project being estimated at less than $80 million. The Project Acquisition and Development Agreement was signed by the shareholders of Azumah and E&P on October 9, 2023, at the Roman Ridge offices of E&P in Accra.

“Per the agreement, the $100 million was to be paid in two equal instalments of US$50 million by June 2024 and June 2026. Through an email exchange between the parties, the first instalment, originally due in June 2024, was amended to December 31, 2024.

“Per the agreement, E&P immediately took control of the project and funded the operations of the mine on an average of US$500,000.00 monthly from November 2023 to date; the last expenses were June 30, 2025. Per the agreement, E&P appointed two representatives to the board of Directors of Azumah Ghana in January 2024.”

Again, “Per the agreement, E&P was responsible for raising the finance to develop the project. ⁠Indeed, a top executive of the shareholders of Azumah from Australia accompanied officials of E&P to Lome, Togo, to visit and hold discussions with EBID towards the project acquisition and development”.

“E&P managed to renegotiate the existing liabilities to salvage the entity” adding, “In August 2024, a gentleman named James Wallbank, Director of Azumah, started making demands to increase the price of the project from $100 million to $300million. His reason is that after the contract was signed in October 2023, the price of Gold increased by more than 100%”.

“E&P rejected this position and insisted on paying the original value agreed upon. This led to a dispute, and E&P commenced arbitration proceedings in October 2024, asking for an order for specific performance of the contract, particularly when Azumah claimed to have unilaterally terminated the agreement.

“E&P also filed an application in the High Court in Ghana in 2024 asking for an order for E&P to continue to discharge its obligations under the contract and exercising its rights under the contract until the determination of the arbitration. The high court upheld E&P’s argument and, in a ruling issued in June 2025, ordered the status quo to remain in place until the contract could be enforced. In effect, the alleged termination by Azumah was held by the court to be of no effect”.

“Meanwhile, E&P made a formal application to EBID in early 2024 for a facility of $ 100 million to pay the shareholders. EBID finally approved and signed the facility contract to give E&P the $100 million to pay the shareholders of Azumah”.

“Addressing false allegations in the media, allegation – E&P only signed the agreement to acquire Azumah after the elections said it. Response – FALSE – The agreement was signed on 9th October 2023.

“On the allegation that the President or Government of Ghana and its appointees influenced this acquisition or the financing of it in any way, E&P described it as “false”, saying “Every single milestone in this transaction, (ie signing of agreement to acquire the project and offer letter for financing) was satisfied before the elections in December 2024”.

“On the allegation that Azumah terminated the agreement in December 2024, E&P said, “Azumah unilaterally purported to have terminated the acquisition agreement signed on 9th October 2023. This was despite E&P continuing to fund the operations. In June 2025, the court, in effect, ruled the termination to be of no effect”.  

“On the allegation that “the letter making rounds dissociating Azumah from the signing ceremony”, responded saying “the signing ceremony organised on 7th July 2025, was the signing of the Acquisition facility agreement between two parties, Lender – EBID and Borrower- E&P. Despite the subject matter regarding the acquisition of Azumah, the presence of Azumah was not required”, adding “In any case, the Resident Directors of Azumah were present at the ceremony”.

“There is a deliberate effort to create conditions that would have made it difficult for E&P to raise the required acquisition capital. There is a vested interest in E&P’s failure to raise the funding, to open the avenue for some of the directors of Azumah to unduly take advantage of the significantly higher gold prices”.

“For the way forward, “E&P has already obtained the No Objection Letter from the Minerals Commission to acquire the mine”.

“E&P said it “will continue with the process in line with the agreement for EBID to make payment to the shareholders of Azumah”, adding 3. E&P will commence development activities at the mine and do well to see the first production within 36 months.

“Ghanaians should support their own and not allow mercenaries to divert attention from this historic project, the first time ever for a wholly owned Ghanaian company to acquire a large-scale mine”, adding, “This is not politics. This is a purely commercial transaction on an arms-length basis.

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