THE Minerals Income Investment Fund (MIIF) has agreed to recommend the listing of companies that it has stakes in on the Ghana Stock Exchange (GSE).
The investment vehicle has also agreed to develop a sustainable mining program for small-scale miners that will provide feedstock to certified gold for an exchange traded fund (ETF).
These are some of the agreements in a memorandum of understanding (MoU) signed between the MIIF and the GSE Thursday.
A statement from the GSE and MIIF said the MOU was signed with the view to establish a practical framework for the development of stronger business relations between the two parties.
It said the agreement also set forth the procedures to create an asset class and promote the trade in mineral securities on any of the GSE’s markets.
“As part of the collaboration, MIIF is expected to recommend all mining companies in which it has equity investments for listing on the GSE.
“Furthermore, MIIF will develop a sustainable mining program for small-scale miners that will provide feedstock to certified gold for an ETF,” the statement said.
In her remarks, the Managing Director of the GSE, Abena Amoah, expressed her excitement about the partnership with MIIF and opportunities it presented.
‘‘The two mining companies listed on the exchange are not a good reflection of Ghana’s position as the largest producer of gold in Africa.
“There must be a deliberate strategy to get more mining companies listed on the exchange to deepen the local capital market,” Ms Amoah said.
“This partnership is, therefore, timely, and it will also maximise the value derived from the country's mineral resources once these listings crystalise,” she added.
The said as part of the MOU, the GSE would, among others, make available its platforms for companies working with MIIF to access capital from any of its markets (working capital, long-term debt and equity).
It said the MIIF would lead the education and sensitisation of market players on some mineral asset classes to be created, while the GSE would provide technical assistance in the development of a gold-backed ETF, or other mineral-backed ETFs.
The CEO of MIIF, Edward Nana Yaw Koranteng, expressed delight about the partnership with the GSE.
“The objective of MIIF in line with the vision of the President of the Republic of Ghana, Nana Addo Dankwa Akuffo Addo, is to help develop the entire mining eco-system of Ghana by supporting the sector’s accessibility to capital and most importantly, create Ghanaian mining champions.
“The capital markets have remained that engine for accelerated access to long term capital for mining companies worldwide and it is important that this lever is given to Ghanaian mining companies,” he said.
“It is also important that we develop incentives to encourage international mining companies to list on the GSE which would deepen the Ghanaian capital market,” the MIIF CEO said.