Chifeng Terminated Pact to Acquire Resolute’s Ghana Gold Mine Assets

SEATTLE (Scrap Monster): Chinese Chifeng Jilong Gold Mining announced that it has has terminated the $105m deal signed last year with Resolute Mining to acquire the Bibiani gold mine assets in Ghana. The company alleged that Resolute Mining failed to timely inform it about the termination of the mining lease by the Ghana government authorities earlier this year. Consequently, the Chinese miner has asked the Australian firm to make a refund of $5 million.

In its response, Resolute Mining said that the company had received a letter from the country’s Minerals Commission with regards to termination of mining lease. However, it had recently restored the lease, subject to certain conditions, including one that proposes acknowledgement and acceptance by Resolute and its local subsidiary that the country’s government does not recognize the sale or transfer of Bibiani gold mine to Chifeng.

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Further, Resolute noted that the company will continue to consider all possible options towards successful development or sale of the mine. Any further information, as required, will be provided in due course, it added.

Resolute had decided to sell the mine assets, in line with its strategic focus on core operating assets. Chifeng had expressed plans to recommission the mine as an operating gold mine. The deal was originally slated for March 2021 completion.