Resolute Mining has agreed to sell the Bibiani gold mine in Ghana to Asante Gold after it faced mining lease turmoil at the project earlier this year.
The $US90 million ($121 million) deal will include a $US30 million deposit, a $US30 million payment on or before six months from completion, and a $US30 million payment on or before 12 months from completion.
Canada-based Asante will fund the restart of Bibiani once it acquires the site. The new ownership is not expected to change employment or contract relationships.
In March 2021, Resolute was ordered to cease all activities and operations at Bibiani by the Ghanian government. However, the company had its lease restored in April 2021.
Resolute managing director and chief executive officer Stuart Gale said the decision would allow the company to focus on its core operating assets.
“Resolute has made a commitment to deliver sustainable and enduring value to shareholders and to the communities in which we operate,” Gale said.
“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.
“The transaction is consistent with our strategic focus on our core operating assets and strengthening the balance sheet, with the initial cash receipt of US$30 million to be applied to the voluntary repayment of debt.
“We do not expect there to be any material tax implications following the completion of this transaction.”
Asante president and chief executive officer Douglas MacQuarrie said the company would will bring the mine back into production within the next year.
“Asante identified the Bibiani Gold Mine as a commercial and strategic investment. Our investment strategy with respect to Bibiani is to achieve near-term economic returns on a long-life asset,” he said.
“Resolute has reported 2.5 million ounces of gold in current mineral resources and Asante has recognised additional exploration upside potential, both from near surface and underground targets.
“Asante is already building the management and operations team with a view to bring the Bibiani mine to production within the next year. Further discussions are underway to fully fund the acquisition and its’ development using non-dilutive financing.”