[Ghana] Asante Gold acquires Bibiani Gold Mine from Resolute for $90m
Resolute Mining announced it has agreed to sell its interest in the Bibiani Gold Mine to Asante Gold for total cash consideration of $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.
Stuart Gale, Managing Director & Chief Executive Officer, Resolute: “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’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 $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.”
Both the agreement and transaction have received Ministerial Consent, having been approved by the Ghanaian Minister for Lands and Natural Resources, with completion expected 10 days after the date of this announcement.
Douglas MacQuarrie, President & CEO, Asante: “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 nondilutive financing.”
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.