Resolute Mining has finally gotten rid of its troublesome Bibiani mine in Ghana.
The company told the ASX on Thursday it secured the $90 million sale of Bibiani to Canada’s Asante Gold Corporation.
That was after it ran into trouble with the Ghanaian government earlier this year which had opposed the late 2020 deal with China’s Chifeng Jilong Gold Mining.
Resolute’s sale price is $15 million less than the deal with the Chinese company. Back in December, 2020, the company announced that it would receive a $5 million deposit on signing the agreement and the remaining $100 million on completion of the sale of Chifeng.
Resolute said Asante is dedicated to injecting the necessary capital to achieve the rapid restart of Bibiani, which is not expected to result in any immediate changes to employment or contract relationships.
Asante also has strong ties to Ghana, with Ghanaian citizens holding a significant shareholding, and board and executive roles.
Asante has announced plans to co-list its shares on the Ghana Stock Exchange.
The Ghanaian Honourable Minister for Lands and Natural Resources, Samuel A. Jinapor, offered his support for the deal.
“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,” Resolute chief executive Stuart Gale said in a statement.
“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.”
The Bibiani mine is located in the western Ghana. Resolute acquired the mine in 2014 and placed it on care and maintenance for exploration activities. An updated feasibility study for Bibian was released in July 2018.
Mineral resources at Bibiani were put at 21.7 million tonnes at 3.6 grams of gold a tonne for 2.5 million ounces of gold.
Resolute shares rose 4.5% yesterday to 58 cents but are still down more than 20% so far in 2021.
