West Africa, which between 2010 and 2022 will be the region with the fastest-growing gold production in the world, continues to attract the attention of international investors. Canadian company Sanu Gold has announced that it has raised 12 million Canadian dollars (around $8.4 million) via a share placement to finance its gold exploration projects in Guinea. The deal, backed by major shareholders such as the Lundin family, illustrates the growing appetite for untapped reserves in the sub-region.
Based in Vancouver, Sanu Gold is backed by the Swedish-born Lundin family, an influential figure in the Canadian mining sector. Descendants of 20th-century mining magnate Adolf H. Lundin, the Lundins are consolidating their hold on West African gold. In December 2024, they had already acquired a 10% stake in Sanu Gold. With this new round of financing, which will result in a dilution of the shareholding, the family is committed to maintaining its stake at this level, thereby affirming its confidence in the company's potential.
The investment in Sanu Gold is part of the Lundin group's wider strategy in West Africa. Via Montage Gold, in which they hold a 19.9% stake and which in turn controls 19.9% of Sanu Gold, the Lundins are steering the development of the Koné project in Côte d'Ivoire. Heralded as the country's future largest gold mine, this project illustrates their ambition to become a key player in the regional mining sector. In Guinea, the funds raised by Sanu Gold will be used to step up exploration on its gold licences, in a country rich in resources but still under-exploited.
West Africa has appeal far beyond Lundin. According to Aurum Resources, the region's contribution to global gold supply has jumped from 8.7% in 2010 to 14.6% in 2022, driven by unprecedented global growth. Mining giants from Canada, China and Australia are flocking to countries like Ghana, Côte d'Ivoire and Guinea, attracted by some of the world's most promising reserves. This dynamic can be explained as much by the geological wealth as by the growing desire of local governments to develop their resources.
Sanu Gold's fundraising comes against a backdrop of increased competition between international investors. Chinese companies in particular are stepping up their acquisitions and partnerships, while Australian and Canadian players such as Lundin are banking on high-potential projects to secure their position. For Sanu Gold, the C$12 million marks a decisive step in the exploitation of Guinean deposits, with the hope of turning geological promise into economic success.
With its reserves still largely untapped, West Africa looks set for a golden future, driven by investors ready to gamble on its subsoil. It remains to be seen whether this gold rush will benefit local populations as much as foreign shareholders.