Resolute Mining Limited has announced that it has entered into a binding agreement to sell the Bibiani gold mine in Ghana to Chifeng Jilong Gold Mining Co. Ltd. Resolute had acquired the mine in 2004, but placed it on care and maintenance. The decision to sell the mine follows the review launched in January this year.
As per the agreement, the sale deal is for a total cash consideration of $105 million. Out of this, $5 million deposit has to be paid upon signing the agreement. The balance $100 million must be paid upon completion of the deal, subject to government approvals and other conditions. The deal is slated for March 2021 completion.
Both the companies have agreed for an orderly transition of ownership at Bibiani. In addition, the Chinese buyer has announced its commitment to inject necessary capital, so as to achieve the rapid restart of the mine. Chifeng will retain all its existing local employees. There will not be any immediate changes to employment or contract relationships.
Mr Stuart Gale, Interim Chief Executive Officer, Resolute Mining expressed confidence that the company’s positive legacy in Ghana, and the interests of all stakeholders in Bibiani, will be protected and enhanced under Chifeng’s ownership. The transaction is consistent with its strategic focus on core operating assets and balance sheet improvement, he added.
Mr Wang Jianhua, Executive Chairman, Chifeng said that the company plans to recommission Bibani as an operating gold mine in the shortest possible timeframe.