Resolute Mining’s problems with its Bibiani gold mine prolong, as the Chinese company that had agreed to make the purchase declined the deal worth US$ 105 million.

This new development comes five days after the mining licence dispute with the Ministry of Lands and Natural Resources was settled, following a letter from the Minister, Hon. Samuel Abu Jinapor.

The buyer of the gold mine, Chifeng Jilong Gold Mining Company, December last year, agreed to buy the mine. However, in a letter submitted to Resolute, the Minister for Lands and Natural Resources ordered the termination of Resolute’s licence at the Bibiani gold mine. Quite surprising to Resolute, the letter did not disclose any reasons for the sudden action.

That notwithstanding, Resolute managed to restore the licence after it released a statement to the effect that, it would pursue clarification for terminating the mining lease from the Minister’s office.

The clarification they had was an ensuing letter from the Ministry, lifting the revocation and indicating its non-recognition of the sale of the gold mine to Chifeng Jilong Gold Mining Company.

Resolute Mining’s licence was restored on 14th April, however, conditioned on the fact that the government would have to approve of any sales or transfers to a third party, including the current sale.

Apparently, the government revoked the licence as a ‘silent’ measure to halt the sale of the Bibiani gold mine to Chifeng Jilong. Perhaps the government is not in sync with having Chifeng Jilong assume control over the mine.

Chifeng Jilong walks away from contract

Chifeng Jilong Gold Mining noted that it has canceled the agreed purchase of the Bibiani gold mine, citing the main reason that it has not received timely information from Resolute Mining about the termination of the mining lease.

As a result, Resolute Mining Company Ltd. in a statement released on 20th April, notified its Shareholders about the latest development.

“Chifeng has advised Resolute that it has terminated the agreement. [This is] on the grounds that the mining lease has been revoked or terminated or the validity or legality of the mining lease has been materially impacted. [Therefore], Resolute must refund the deposit of $US5 million (and any accrued interest) to Chifeng within five business days of the termination and that Chifeng has served all of its rights.”

However, Resolute Mining has indicated that it is not going to avoid selling the Bibiani gold mine in spite of the problems it is currently facing.

“Resolute will continue to consider all options for the successful development or sale of Bibiani and will provide further information in accordance with continuous disclosure requirements, as required.”

On the part of Chifeng Jilong Gold Mining Company, the decline of the deal would not negatively impact its overall business development and operations.

Should this deal have been successful, it would have led to Chifeng Jilong’s second mine acquisition outside of China, after it secured a 90 percent share in Sepon gold and copper mine in Laos in 2018.