Australia鈥檚 Resolute Mining (ASX, LON: RSG)聽has in Ghana to China鈥檚 Chifeng Jilong Gold Mining for $105 million cash.
The Western Australia-based miner has received a $5 million deposit upfront, with the remainder expected upon completion of the transaction, which is expected in March 2021.
The company acquired Bibiani in 2004 but placed the mine on care and maintenance shortly after to allow exploration activities to develop the asset into a large-scale operation.
Bibiani鈥檚 sale reduces Resolute鈥檚 portfolio to two gold assets: Syama, in Mali and Mako, in Senegal
Resolute changed tune in January this year, launching a review of the mine to determine whether to keep it or sell it to a company 鈥渋n better place鈥� to keep the gold mine running.
Chifeng noted on Tuesday it would immediately invest the required capital and provide the necessary expertise to recommission Bibiani as an operating gold mine in the shortest possible time frame.
鈥淚 am confident that Resolute鈥檚 positive legacy in Ghana, and the interests of all stakeholders in Bibiani, will be protected and enhanced under Chifeng鈥檚 ownership,鈥澛燫esolute鈥檚 interim chief executive officer, Stuart Gale, said in the statement.
Resolute sold in January its Ravenswood gold mine in Queensland 鈥� the only Australian asset it had 鈥� to private equity firm EMR Capital Management. The $207 million deal left the company with three mines in Africa 鈥� Syama in Mali; Mako in Senegal; and Bibiani.
Bibiani鈥檚 sale would reduce Resolute鈥檚 portfolio to only two assets and is subject to a number of conditions. Those include the approval of the Australian Foreign Investment Review Board as well as Chinese and Ghanaian government authorizations.聽聽