A major announcement scheduled for today, July 7, 2025, by Engineers & Planners (E&P) regarding the acquisition of the Black Volta Gold Project has been thrown into uncertainty, following strong denials from current project owner Azumah Resources and the backdrop of a $100 million arbitration dispute between the two companies.
A circulating invitation announcing a “Facility Agreement Signing Ceremony” between E&P and unnamed financiers, allegedly to formalize the acquisition of the Black Volta Gold Project, has sparked widespread confusion and speculation in the Ghanaian mining industry. The event is scheduled to take place at the Marriott Hotel in Accra.
However, Azumah Resources Ghana Limited, the owner of the Black Volta asset, has categorically denied any sale or planned transfer of ownership. In a public statement issued on July 4, Azumah called the invitation “unauthorized, false, and misleading,” stating unequivocally that no transaction has been approved or even contemplated with E&P.
“We have neither sold nor are in the process of selling the Black Volta Gold Project,” Azumah stated, emphasizing that the project remains 100% owned by the company and that construction activities are ongoing, fully funded by its shareholders.
Arbitration and Accusations
Behind the public denials lies an unresolved legal dispute between the two parties. In October 2024, E&P initiated arbitration proceedings against Azumah at the International Chamber of Commerce (ICC) in London, claiming a breach of a 2023 development framework agreement. Under the agreement, E&P was to undertake early-stage work on the project in exchange for an option to acquire equity in the mine.
Azumah terminated the agreement in December 2024, citing E&P’s failure to meet financing obligations, sign an Engineering, Procurement and Construction (EPC) contract, or begin site development. The company has since filed a counterclaim seeking $100 million in damages, alleging contractual breaches, misappropriation of funds, and unauthorized activities carried out by E&P representatives.
Legal proceedings are ongoing, with the tribunal chaired by Funke Adekoya SAN and co-arbitrators Shadrack Arhin of Ghana and Edwin Glasgow KC of the UK. E&P is represented by Robert Smith Law Group, while Azumah has retained Steptoe International (London) and Bentsi-Enchill, Letsa & Ankomah in Ghana.
Financing Doubts and Market Speculation
Adding to the uncertainty is the question of financing. Sources close to the transaction suggest that the Ecowas Bank for Investment and Development (EBID) may be providing a $100 million facility to support the acquisition. However, industry analysts have expressed skepticism over EBID’s actual readiness to fund the deal, given the unresolved legal issues and lack of clarity over project ownership.
While E&P is believed to have made considerable upfront investments as a contractor during the early phase of the mine’s development, Azumah maintains that all such contributions were subject to the conditions of the now-terminated agreement.
A High-Stakes Dispute
The Black Volta Gold Project, located in northwest Ghana, is considered one of the country’s most promising gold prospects. Its development has national strategic implications, attracting attention from investors, regulators, and local communities alike.
In a parallel legal battle, E&P and its CEO Ibrahim Mahama are also suing Ghanaian policy analyst Bright Simons for defamation, following his claims that the company’s financial health was compromised by stalled operations and its influence on national mining policy. The plaintiffs have denied these allegations, describing them as “false, malicious and defamatory.”
What Happens Next?
As of early Monday morning, it remains unclear whether the scheduled signing ceremony will proceed. With Azumah’s firm denial, ongoing arbitration, and financing uncertainties looming large, market watchers are bracing for further developments.
For now, the fate of the Black Volta Gold Project remains unresolved.
All of these are happening at a time that there is a clamour for indigenous investors to have significant equity in the country’s mineral resources in order to retain a higher percentage of earnings from the country’s natural resources.
