Azumah Rejects E&P Deal as $100M Mining Dispute Heads to Arbitration

Azumah Resources Denies Reports of Investment by E&P in Black Volta Gold Project

Azumah Resources has officially refuted recent claims that Engineers and Planners (E&P), a Ghanaian-owned mining company, has either acquired or invested in its Black Volta Gold Project, located in the Upper West Region. This clarification comes after media outlets reported that E&P had secured $100 million in financing from the ECOWAS Bank for Investment and Development (EBID), with some suggesting this funding was tied to Azumah’s project.

In a formal statement, Azumah Resources emphasized that E&P has not made any offer to fund or invest in the company. The statement read: “E&P has yet to provide any formal offer to Azumah, either to assist in funding the Black Volta Mine or to invest in Azumah. E&P does not own any shares in Azumah.”

The company expressed disappointment over what it described as “misleading public statements” made by E&P. These statements, according to Azumah, have been widely circulated among global mining companies and could potentially harm its international reputation. It further stated that the claims made by E&P are not supported by law or fact.

Azumah Resources highlighted that when it sought to involve Ghanaian companies in the project, E&P initially offered more than $250 million in funding but has only managed to provide $4 million to date. In contrast, the company has secured financial backing from international investors who have developed over $10 billion worth of mines globally. These investors, Azumah said, will support the construction of the mine.

The company remains open to capital from other local companies and investors, emphasizing its commitment to lawful development, transparency, and building Ghana’s future in partnership with the Government of Ghana and in the best interests of its people.

Perspectives from Company Leadership

The Project Director of Azumah Resources, Rob Cicchini, commented on the matter, stating: “The future of this project should be in the hands of those who can deliver, not those who cannot. A sale to E&P, without a demonstrated ability to fund the full development of the Black Volta Gold Project, would not be in Ghana’s national interest.”

He added that even if E&P could raise the necessary funds, it has shown over several years that it lacks the resources to fully develop the project. Without proper funding, he warned, Ghana would suffer, along with local communities and job opportunities.

John Mason, the spokesperson for Azumah Resources, reinforced the company’s stance, saying: “Azumah Resources is committed to ensuring this project benefits Ghanaians, led by Ghanaians, with partners who are willing and able to build with us. We have a duty to protect Ghana’s resources for the benefit of all.”

The statement also noted that Azumah will pursue all available remedies in arbitration and reserves all rights to protect its interests and the Black Volta Gold Project.

E&P’s Counter-Claim

E&P, however, disputes Azumah’s account and maintains that a binding agreement was signed on October 9, 2023, for $100 million to be paid. According to a statement issued by E&P, signed by its Business Development Director, Mr. Emmanuel Erskine, the company accepted the offer and the risk, despite the project being estimated at less than $80 million.

The agreement stipulated that the payment would be made in two equal installments of $50 million each, scheduled for June 2024 and June 2026. An email exchange between the parties later amended the first installment to December 31, 2024.

E&P claimed to have taken control and funded the mine with approximately $500,000 monthly from November 2023 through June 30, 2025. In August 2024, Azumah’s Director, James Wallbank, reportedly demanded an increase in the project price from $100 million to $300 million, citing a rise in gold prices of over 100% since the October 2023 contract.

E&P rejected this request, insisting on the original price. This dispute led to arbitration initiated by E&P in October 2024, seeking specific performance after Azumah allegedly unilaterally terminated the contract.

E&P also denied any political involvement in the matter, stating that it is a purely commercial transaction. The company pledged to continue the process in line with the agreement for EBID to make payment to Azumah’s shareholders.