18th June 2024
TEMPLARS Advises Electrochem Ghana on US$30 Million Equity Investment by Minerals Income Investment Fund
TEMPLARS has advised Electrochem Ghana (the largest salt mining company in Africa) on a USD 30 million equity investment to the Minerals Income Investment Fund (MIIF) – a sovereign fund that seeks to manage the equity interests of, and receive mineral royalties and income for, Ghana. The transaction aims to finance Electrochem’s expansion of the Ada Songhor salt mining project, which spans over 40,000 acres of salt-rich basins.
Since obtaining the concession in 2020, Electrochem has invested significantly to increase salt production to over 1 million metric tonnes annually, with a projected revenue of USD 6 billion over the next decade. MIIF’s investment will support earthworks, equipment purchases, and the construction of a port facility, expected to create over 100,000 jobs and boost local economic growth.
The investment leverages opportunities from the African Continental Free Trade Agreement (AfCFTA) and reinforces MIIF’s commitment to diversifying its mining portfolio. This strategic move enhances Electrochem’s valuation ahead of its planned initial public offering.
The TEMPLARS team was led by Partner, Sarpong Odame supported by Senior Associate, Kojo Amoako, and Associates, Matilda Sarpong and Nana Kofi Amadieh.
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