- Resolute Mining (RSG) has entered a binding agreement to sell the Bibiani gold mine in Ghana to China-based Chifeng Jilong Gold Mining
- The deal is expected to net Resolute around US$105 million (approximately A$139.33 million) but still requires approval by the relevant Australian, Chinese and Ghanaian regulatory bodies
- Based on Resolute’s 2018 updated feasibility study, Bibiani is estimated to contain 21.7 million tonnes at 3.6 grams of gold per tonne for 2.5 million ounces of gold
- Once Chifeng secures the mine, it intends to recommission Bibiani as an operating gold mine “in the shortest possible timeframe”
- Resolute Mining closed 0.68 per cent down for 72 cents per share
Resolute Mining (RSG) has entered a binding agreement to sell the Bibiani gold mine in Ghana to China-based Chifeng Jilong Gold Mining.
The deal will net Resolute around US$105 million (approximately A$139.33 million).
Resolute has already poured a sizeable amount of funding and exploration into the mine, undertaking numerous drill programs and developing an updated feasibility study. The mine was previously in production, but Resolute halted operations back in 2014 to develop a “economically viable, long term, larger scale underground operation”.
Based on Resolute’s most recent feasibility study, Bibiani consist of 21.7 million tonnes at 3.6 grams of gold per tonne for 2.5 million ounces of gold.
Resolute’s Interim CEO, Stuart Gale, said the company was proud of its contribution to Ghana and pleased that its work on Bibiani will provide a strong base for future success and value creation.
“I am confident that Resolute’s positive legacy in Ghana, and the interests of all stakeholders in Bibiani, will be protected and enhanced under Chifeng’s ownership,” he added.
Resolute maintained that the sale was consistent with its current strategic focus on core operating assets, as well as balance sheet improvement.
On the other side of the transaction, Chifeng’s Executive Chairman Wang Jianhua said he was “delighted” to have secured Bibiani, given the current gold market.
“Resolute has defined an exciting future for Bibiani as a high margin, long life underground gold mining operation,” he added.
Before the deal can move forward, however, it will need to be approved by the relevant Australian, Chinese and Ghanaian regulatory bodies.
Once Chifeng secures the mine, it intends to recommission Bibiani as an operating gold mine “in the shortest possible timeframe”.
Resolute Mining closed 0.68 per cent down for 72 cents per share.