Resolute Mining Announced Sale of Ghana Gold Mine Asset

SEATTLE (Scrap Monster): Australia-based Resolute Mining announced that it has reached an agreement to sell its interests in the Bibiani Gold Mine in the African nation of Ghana to Asante Gold Corporation. The call-cash deal is valued at $90 million. It has already received Ministerial Consent and is expected to be completed within ten days.

As per the agreement, $30 million in cash is to be paid as deposit, which Resolute has already received. Also, $30 million will be paid on or before 6 months from the date of completion, with the balance $30 million to be paid within 12 months. Also, both the companies expressed commitment to ensure orderly transition of ownership at the mine.

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The transition is not expected to bring immediate changes to employment or contract relationships. Furthermore, Asante promised injection of necessary capital in order to ensure earliest restart of Bibiani gold mine operations. It expects to bring the mine to production before the end of next year. Also, Asante’s shares will be co-listed on the Ghana Stock Exchange.

The financial advisor to Resolute on this transaction was Treadstone Resource Partners, whereas Thomson Geer acted as legal advisors.

The Bibiani mine consists of 21.7 million tonnes at 3.6 grams of gold per tonne for 2.5 million ounces of gold.