Asante Gold Corporation has announced that the company has entered into an agreement with Resolute Mining Limited (Resolute) to purchase 100 per cent of its Bibiani Gold Mine in Ghana.
This purchase transaction comes months after a previous attempt of sale of Resolute’s Bibiani Gold Mine to China’s Chifeng Jilong Gold Mining failed, saying it had not received timely information about the termination of a mining lease.
The payment plan involves an initial payment of US$30 million on deposit with Resolute which will take effect after completion; an additional US30 million to be paid on or before 6 months from completion; final US$30 million to be paid on or before 12 months from completion.
According to Asante Gold, the agreement has received approval by the Minister for Lands and Natural Resources, Hon. Samuel A. Jinapor, with the next 10 days of the release of the announcement expected for the completion of the agreement.
In a statement released by Asante Gold yesterday, August 4, 2021, the company indicated that both parties (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 outstanding 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.”
Commenting on the purchase agreement, the Minister for Lands and Natural Resources, Samuel A. Jinapor highlighted:
“I commend the recent approach of Resolute and Asante in their dealings with the Ministry for Lands and Natural Resources and I am pleased to support the transition of ownership of Bibiani to Asante.”
Remarks by Resolute CEO on the transaction
Furthermore, Resolute’s Managing Director & Chief Executive Officer, Mr. Stuart Gale also 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’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. The Bibiani 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.”
Remarks by Asante Gold’s CEO
Asante Gold’s President and CEO, Mr. Douglas MacQuarrie remarked: “Bibiani is a sleeping giant – essentially unmined and on care and maintenance since Ashanti Goldfields exited the project in 2006 when gold was just US$650 per oz.
“Our investment strategy is to achieve near-term economic returns on this very long-life asset. Resolute has reported in their Bibiani Feasibility Study Update- 2.5 Moz (21.7 million tonnes grading 3.6 g/t) of gold in current JORC resources.
“Asante has recognized additional exploration upside opportunities, 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 through its recent 50,500 metres of drilling.”
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