Resolute Mining Ordered to Stop Operations at Bibiani Gold Mine

SEATTLE (Scrap Monster): Resolute Mining declared that it has sought legal advice following termination of mine license for the Bibiani gold mine by Ghanaian authorities. The miner has been ordered by the Ghanaian Minerals Commission to halt all activities and operations at the mine site until further notice.

The press statement by the company said that it is seeking legal advice on the validity of the notice and possibilities of a potential appeal. The action on behalf of the Minister of Lands and Natural Resources had been unexpected, it noted. Furthermore, it noted that the company is seeking clarification from the Minister’s office for the rationale behind terminating the mining license.

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Resolute Mining had acquired the Bibiani mine in 2004. Shortly after purchase, it had kept the mine on care and maintenance. The feasibility study carried out in 2018 had projected gold production at around 100,000 ounces per year over the ten-year mine life. Earlier this year, it had entered into a $105 million deal with Chinese Chifeng Jilong Gold Mining Co towards sale of the mine.

Meantime, the shares of the company on the London Stock Exchange tumbled to hit the record low since its listing in the late 1990s.