Resolute Mining sells Bibiani Gold Mine for $90 million

Resolute Mining sells Bibiani Gold Mine for $90 million

LONDON, UK: Resolute Mining Limited has agreed to sell its interest in the Bibiani Gold Mine to Asante Gold Corporation for total cash consideration of US$90 million.

Resolute and Asante are committed to ensuring an orderly transition of ownership at Bibiani. Asante is dedicated to injecting the necessary capital to achieve the rapid restart of Bibiani, which is not expected to result in any immediate changes to employment or contract relationships.

Asante has strong ties to Ghana, with Ghanaian citizens holding a significant shareholding, and board and executive roles. Asante has announced plans to co-list its shares on the Ghana Stock Exchange.

The Ghanaian Honourable Minister for Lands and Natural Resources, Hon. Samuel A. Jinapor, MP (the Minister), commented: “I commend the recent approach of Resolute and Asante in their dealings with the Ministry for Lands and Natural Resources and am pleased to support the transition of ownership of Bibiani to Asante.”

Resolute’s Managing Director & Chief Executive Officer, Mr Stuart Gale commented: “Resolute has made a commitment to deliver sustainable and enduring value to shareholders and to the communities in which we operate. 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.

I would once again like to reiterate my sincere gratitude to the Minister for his leadership, sense of integrity and collaboration with Resolute and Asante to achieve a mutually beneficial outcome for all parties. Similarly, Resolute would like to acknowledge the significant contribution made towards this outcome by the Ghana Minerals Commission.

I am confident that Resolute Mining’s positive legacy in Ghana, and the interests of all stakeholders in Bibiani, will be protected and enhanced under Asante’s ownership.”

“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’s President & CEO, Mr Douglas MacQuarrie commented: “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. Resolute has reported 2.5Moz of gold in current Mineral Resources and Asante has recognized additional exploration upside potential, both from near surface and underground targets. It is Asante’s intention, as far as is reasonably practicable, to continue building on the excellent base which Resolute has established.”

“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.”

Both the agreement and transaction have received Ministerial Consent, having been approved by the Ghanaian Honourable Minister of Lands and Natural Resources, with completion expected 10 days after the date of this announcement (subject only to no material adverse change over this period).

The share sale agreement is otherwise on customary terms and conditions for a transaction of this nature, including pre-completion obligations, termination rights and warranties provided by the parties.

Treadstone Resource Partners acted as financial advisor to Resolute. Thomson Geer acted as legal advisors to Resolute.

Resolute Mining Limited share price

0.58 AUD+0.025 (4.50%)today

5 Aug, 4:10 pm GMT+10 ·Disclaimer

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