Shares in Resolute Mining, the African-focused gold producer, fell out of bed yesterday when the company revealed it had lost a key asset – a gold mining lease in the West African country of Ghana.
What made the news of the loss of the Bibiani mine even more damaging for Resolute is that the company has been attempting to sell the lease (and to a Chinese company for $US105 million in cash.
That news saw Resolute shares slump 27% at one stage to 45.5 cents and ended the day clinging on to a 26% slide to 46.5 cents.
Resolute told the ASX in a short, two paragraph statement it had received a letter from the Ghanaian Minerals Commission advising that, on the instructions of the Ghanaian Minister of Lands and Natural Resources, the lease for its gold mine in West African nation stands terminated.
Resolute had in December agreed to sell Bibiani to Chifeng Jilong Gold Mining Co for $US105 million cash. Now the Ghanian government has told it to stop all activities and operations at site.
Resolute had been looking at restarting an underground mine at Bibiani to produce 100,000 ounces of gold a year at an all-in sustaining cost of around $US746 an ounce over a 10 year mine life. Resolute claims the lease contains a resource of 2.5 million ounces of gold.
Resolute says it is seeking legal advice on the matter, which it said had been unexpected.
