Resolute Sells Interest in Bibiani Gold Mine
“Resolute is proud of its contribution to Ghana and pleased that our investments at Bibiani in exploration, feasibility studies, and community support will provide a strong base for future success and value creation,” Resolute Interim CEO Stuart Gale said. Chifeng said it is committed to injecting the necessary capital immediately to achieve the rapid restart of Bibiani in the shortest possible timeframe. “We are delighted to have secured such a significant gold mining asset in the current market,” Chifeng Executive Chairman Wang Jianhua said. “Resolute has defined an exciting future for Bibiani as a high margin, long life underground gold mining operation.”
Transaction completion is conditional upon approval by Ghana Minister of Lands and Natural Resources, Australia’s Foreign Investment Review Board, and various Chinese governmental approvals. Resolute is required to notify Chifeng if any superior proposal is received for Bibiani, following which Chifeng has 20 business days to match the offer. If Chifeng does not match the offer, either Chifeng or Resolute may terminate the agreement, upon which a break fee of $10 million will be payable by Resolute. The break fee is also payable by Resolute if Chifeng terminates the agreement due to a breach by the company of its obligations under the agreement.