Agyapa Royalties deal: I am proud to be a part – Gabby

Gabby Asare Otchere-Darko, a Senior Partner at Africa Legal Associates LLP, has expressed delight in the role of his firm in the Agyapa Royalties deal.

Mr Otchere-Darko’s firm was part of the transaction advisors for the agreement which received a green light from the government with the Initial Public Offer (IPO) slated by the end of the year.

Agyapa Royalties is a Special Purpose Vehicle (SPV) company which was approved on August 14, 2020, by parliament in line with the Minerals Income Investment Fund (MIIF) Act, 2018 (Act 978).

This is aimed at using the state firm to secure about $1 billion through prudent management of mineral resources.

The Ghana Stock Exchange (GSE) and the London Stock Exchange have been earmarked as the trading platforms for the company.

Mr Otchere-Darko, a leading member of the governing New Patriotic Party (NPP) and cousin to President Akufo-Addo said, “I am proud to be a part” of the deal”.

“My firm has had the opportunity to work on this transaction,” he confirmed as he touted the arrangement as a “destiny changing” move for Ghana.

He said in an interview on Asempa FM that the country has not benefitted from the gold resources which have been mined for centuries.

He compared the fortunes of Johannesburg, South Africa’s mining heart beat to that of Obuasi, the citadel of gold mining in Ghana, and insisted that the failed vision for  mineral resources shortchanged the country’s growth.

He indicated that President Akufo-Addo is overseeing an industrialisation drive, hence such initiatives to maximise the returns on Ghana’s resources.

He pointed out that Mr Akufo-Addo has been able to elevate the value of Ghana’s gains from cocoa after an arrangement with La Cote D’Ivoire with Ghana now processing 40% of cocoa compared to 27% initially.

Agyapa Royalties agreement

In the deal, Agyapa Royalties Ltd will manage 75.6% of royalties of at least 16 gold mining companies.

The Minerals Development Fund takes 20% while the Ghana Revenue Authority gets 2.4%.

Agyapa Royalties Ltd would keep 51% of the value of the company and float 49% on the London Stock Exchange and also the Ghana Stock Exchange.

That 49% has been valued by the government at $1billion. It hopes to get investors to buy shares while Agyapa Ltd collects gold royalties from future mineral resources to pay as dividend to shareholders.

Agyapa Royalties Ltd is also incorporated in a tax haven, British channel island, Jersey, where companies don’t pay corporate tax. It means shareholders will enjoy considerable tax reliefs.

Gabby To Sue NDC MP For Defamation Over Agyapa Royalties Saga

Mr Otchere-Darko did not take kindly to an allegation concerning his involvement in the whole process.

He made his intentions known that he was going to sue NDC MP, Richard Acheampong, for defamation.

According to him, the MP has made claims that he had shares in Agyapa Royalties.

“An MP has falsely accused me of being a beneficial owner of Agyapa Royalties, formerly Asaase Royalties, an entity registered both here in Ghana and Jersey, a British dependent, for the purposes of an anticipated listing on the London Stock Exchange.

“I am serving notice that I have instructed my lawyers to sue the MP for Bia East, Richard Acheampong for defamation”.

He explained that: “Agyapa Royalties is 100% owned by a body set up by an Act of Parliament, where the MP earns his income. That body is the Minerals Income Investment Fund set up in 2018, (Act 978), which is 100% state-owned.