Ghana is situated on the west coast of Africa, approximately 600 kilometers north of the equator on the Gulf of Guinea. Accra, the capital city of Ghana, is located almost exactly on the Prime Meridian. The former British colony changed its name from the Gold Coast to Ghana on achieving independence in1957. Ghana is now a republic with a population of approximately 28 million people and a democratically elected government. English remains the official and commercial language.
Ghana is the oldest, democratic independent state in Africa, south of the Sahara. The most recent parliamentary and Presidential elections took place in December 2020.
The Ghanaian legal system is generally modeled after and based on British common law. The laws of Ghana include the Constitution, national laws passed by Parliament (or under authority granted by Parliament), and the common law of Ghana. The common law of Ghana includes customary rules which apply to particular communities in Ghana and which may or may not be consistent with the Constitution or a specific national law.
Ghana is a mining-friendly country with two mining colleges and a large workforce trained in the disciplines of geology, exploration methods, and mining engineering.
The Company is of the view that any risks associated with its corporate structure and its foreign operations are minimal and can be effectively managed by the Company without undue burden or associated costs.
Ghana has risen three places since 2017, to the seventh-largest gold producer in the world. In 2020, Ghana exported 142 tonnes of gold and is now the largest gold producer in Africa. In the process, Ghana has eclipsed South Africa, the leader for decades.
Gold mining was a major source of wealth and trade as far back as the Ghana (Wagadou) Empire (c. 300 – c. 1100) and in more recent times when it was known as the Gold Coast.
During 120 years of near-continuous production, Ghana’s largest underground mine, AngloGold Ashanti’s Obuasi mine, has recorded production exceeding 33M oz of Au. In the last 20 years, major and junior companies including Newmont, Kinross, Goldfields, Golden Star, and Perseus, have also committed significant resources to operations in the country.
The Constitution of Ghana vests title in every mineral in its natural state to the Government of Ghana. The exercise of any mineral right in the form of reconnaissance, exploration or exploitation of any mineral in Ghana requires an appropriate license or mineral right to be issued by the Government of Ghana acting through the Minister responsible for Lands and Natural Resources. The Minister responsible for Lands and Natural Resources administers, promotes and regulates Ghana’s mineral wealth through the Minerals Commission, a governmental organization designed in accordance with the Minerals Commission Act 1993 (Act 450) and the Minerals and Mining Act 2006 (“2006 Mining Act”).
Pursuant to the 2006 Mining Act, a number of regulations were passed in 2012 to clarify and implement provisions of the 2006 Mining Act. These regulations relate to matters such as licensing, local content, technical issues, mineral right holding costs, mine support services and payment of compensation to persons impacted by mining operations. Once a license or mineral right is issued to an entity by the Government of Ghana, Ghanaian mining laws prevent that license or mineral right from being transferred, assigned or mortgaged by the licensee or mineral right holder without the prior written approval of the Government of Ghana. The Ghana Minerals Commission is also required to maintain a public register of all applications, grants, variations, transfers, suspensions and cancellations of such licenses or mineral rights. Official searches may be conducted in the public register to obtain information regarding any license or mineral right granted by the Government of Ghana.
In order to confirm the Company’s title in its material mineral properties, the Company will from time to time obtain legal opinions from its local Ghanaian counsel regarding such title.In order to confirm the Company’s title in its material mineral properties, the Company will from time to time obtain legal opinions from its local Ghanaian counsel regarding such title.
Ghanaian law sets mineral royalties at a flat rate of 10% of mineral revenues.