Government is planning an up to $500 million listing of its gold royalty fund in London in October, though the deal could still run into political opposition, three sources familiar with the matter have told Reuters.

Agyapa Royalties, a government-backed fund that holds equity interests including mining royalties in the state's gold assets, has hired Bank of America and JPMorgan to pursue an initial public offering (IPO) on the London Stock Exchange this year, the sources said.

Royalties are payments that give the owner the right to receive a percentage of production from a mining operation, or retain a stake in them.

Ghana wants to take advantage of the precious metal’s strong performance this year to raise $400 million-$500 million from the IPO, the sources said. The fund’s shares will also be listed on the Ghanaian Stock Exchange.

However, the listing could be derailed or pushed back because of resistance from Ghana’s main opposition party ahead of a December general election, the sources said.

“It’s genuinely 50-50 at the moment, but if the local politics works out, the deal is ready to go this year,” said one of the sources.

The listing provides an opportunity to raise funds without increasing the national debt burden, Ghana’s deputy minister for finance Charles Adu Boahen said, and capital raised will be invested in infrastructure, education, health, and housing.