Resolute Mining Limited (ASX:RSG) has announced that it has entered into an agreement to sell its interest in the Bibiani Gold Mine in Ghana for USD$90 million in cash.
The agreement with Asante Gold Corporation includes the following key terms:
- USD$30 million deposit (already received)
- USD$30 million on or before 6 months from completion; and
- USD$30 million on or before 12 months from completion
The company reports that the deal has received ministerial consent by the Ghanaian Minister of Lands and Natural Resources, with completion expected 10 days post announcement.
Bibiani Gold Mine
The Bibiani Gold Mine is located in the western region of Ghana in West Africa. Since assuming ownership of Bibiani in 2014, Resolute has undertaken two surface and underground resource drilling programs to re-assess underground mine potential at the project.
During the 2018 financial year, Resolute received an Environmental Permit for the re-initiation of underground gold mining at Bibiani. The permit was issued by the Ghanaian Environmental Protection Agency following the submission of an Environmental Impact Statement.
Following receipt of the permit, Resolute released a study update which demonstrated the potential for Bibiani to produce approximately 100,000 ounces annually, at a Life-of-Mine All-In Sustaining Cost of USD$764 per ounce over a 10-year mine life.
Asante Gold Corporation
CSE-listed Asante Gold Corporation is an experienced explorer and developer of gold projects in Ghana including the Kubi Gold Project.
The company reports that Ghanaian citizens hold a significant percentage of its shareholder register, along with board seats and executive positions. Asante has announced plans to co-list its shares on the Ghana Stock Exchange.
“Resolute is proud of its contribution to Ghana and particularly proud to have the opportunity to transfer ownership in Bibiani to a highly regarded team with strong ties to Ghana”
Management comments
Resolute’s Managing Director & Chief Executive Officer Stuart Gale commented: “Resolute has made a commitment to deliver sustainable and enduring value to shareholders and to the communities in which we operate. Resolute is proud of its contribution to Ghana and particularly proud to have the opportunity to transfer ownership in Bibiani to a highly regarded team with strong ties to Ghana. I would once again like to reiterate my sincere gratitude to the Minister for his leadership, sense of integrity and collaboration with Resolute and Asante to achieve a mutually beneficial outcome for all parties. Similarly, Resolute would like to acknowledge the significant contribution made towards this outcome by the Ghana Minerals Commission. I am confident that Resolute’s positive legacy in Ghana, and the interests of all stakeholders in Bibiani, will be protected and enhanced under Asante’s ownership.”
