Ghanaian legal firm Africa Legal Associates (ALA) has completed its engagement with Southern Africa consulting firm Imara Corporate Finance on the monetizing of Ghana’s gold Royalties Project, also known as the Agyapa project.
Imara is a corporate finance consulting firm engaged by Ghana’s ministry of finance as transaction advisor for the Agyapa agreement.
ALA was engaged by Imara Corporate Finance, in May 2018 to provide legal services for the project, which sought to monetize Ghana’s gold royalties.
This was after Ghana’s Ministry of Finance signed a mandate agreement with Imara Corporate Finance, appointing the latter as transaction advisor for the project.
The scope of ALA’s work included providing input on any draft legislation, including structuring, providing assistance with coordination of meetings and presentations which may be required for the approval of the project and liaising with various Ghanaian stakeholders and providing input throughout the transactions process.
The Accra-based law firm also assisted Imara, with the drafting of the documentation required for approval for the project including presentation and memorandums to cabinet, Parliament and other legal documentation.
In a letter of notification of completion of engagement, the managing partner of ALA, Nana Adjoa Hackman Esq., thanked Imara “for the opportunity to have worked with the transaction advisor and other consultants in such a ground-breaking project for the African continent,” noting that “the work of the Minerals Income Investment Fund (MIIF) would open a new avenue for Ghana and indeed Africa in the cross-generational search to secure greater value for our rich natural resources.”
Jayne Backhouse, writing on behalf of Imara Corporate Finance, thanked ALA for “the hard work on the project over the last two and half years” and for their overall support, noting that “ALA has fulfilled its obligations to the project,” expressing that hope that being in the final stages of the transaction, they accept the conclusion of their engagement on the project, and as a consequence, waived the final item in the scope of work, clause 1 (Vii), which essentially a continuing obligation that can be dispensed with through mutual consent.
ALA’s work on the bill and the various agreements to do with setting up and operations of the Minerals Income Investment Fund was done in conjunction with other globally reputable law firms like White & Case- UK, Ogier- Jersey and Bentsi Enchil, Letsa & Ankomah- Ghana.
Background
The Parliament of Ghana, passed the Minerals Income Investment Fund (MIIF) Act 2018 to establish the Fund to manage the equity interests of Ghana in mining companies and receive royalties on behalf of the government.
The Fund is to manage and invest these royalties and revenue from equities for higher returns for the benefit of the country.
The government of Ghana, through the MIIF, set up Agyapa Royalties Limited to securitize Ghana’s gold royalties.
This was after Parliament approved the Agyapa Mineral Royalty Limited agreement with the government of Ghana amid a walkout from the Minority side in Parliament.
In exchange, the company plans to raise between $500 to $750 million for the government of Ghana on the London Stock Exchange to invest in developmental projects.
About Africa Legal Associates
Africa Legal Associates (ALA) is a corporate law firm of solicitor and barristers trained in Ghana and the United Kingdom.
Their integrated approach to servicing clients’ needs comes from the wealth of career experience of the reputable men and women who have built the firm.
