Australian gold miner Resolute Mining has agreed to sell its interest in the Bibiani gold mine in the western region of Ghana to Asante Gold Corporation for approximately A$121 million.
Resolute’s Managing Director & CEO Stuart Gale said the transaction was consistent with the company’s strategy to focus on its core operating assets and strengthening the balance sheet, with the initial cash receipt of approximately A$40 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,” Mr Gale added.
Asante’s President & CEO Douglas MacQuarrie said the company has 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,” Mr MacQuarrie continued.
“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.”
The agreement has received Ministerial Consent, having been approved by the Ghanaian Minister of Lands and Natural Resources, with completion expected by mid-August.