Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Resolute Mining (RSG) has initiated a strategic review process to evaluate options for its gold mine in Ghana
  • The aim of the process is to recommission the mine, assess capital requirements and evaluate funding alternatives
  • Cutfield Freeman & Co and Treadstone Resource Partners will undertake the review in the first half of 2020
  • Resolute is now continuing to evaluate both internal and external growth opportunities to its existing portfolio
  • Resolute’s share price is currently down a slight 0.63 per cent with shares trading for $1.18 apiece

Resolute Mining (RSG) has initiated a strategic review process to evaluate options for the Bibiani Gold Mine in Ghana.

This strategic review of Bibiani is designed to review Resolute’s plans to recommission the mine, assess capital requirements, evaluate funding alternatives and investigate recently received expressions of interest from third parties seeking to acquire the mine.

Resolute has engaged Cutfield Freeman & Co and Treadstone Resource Partners as advisors to conduct the strategic review during the first half of 2020.

These companies will also explore various options for Bibiani including the off-balance-sheet financing of Resolute’s proposal to recommission plan, joint ventures, and the partial or complete divestment of the asset.

The strategic review will aim to maximise value for Resolute shareholders while ensuring that all local stakeholders in Ghana will continue to benefit from the economic and social advantages that Bibiani will provide.

No binding agreement has been entered regarding the financing or divestment of Bibiani and there is no guarantee that the strategic review will result in any specific transactional outcome.

Bibiani is a historically significant gold mine situated in the western region of Ghana and has been a major gold producer in the region.

It has available mining and processing infrastructure on site consisting of a three million tonne per annum mill and processing plant, and existing underground mining infrastructure.

Since obtaining ownership of Bibiani in 2014, Resolute has undertaken two surface and underground resource drilling programs to re-assess the underground mine potential.

In June 2018 an updated feasibility study was released which demonstrated the potential for Bibiani to produce 100,000 ounces per annum at a life-of-mine all-in sustaining cost of US$764 (AUD$1104) per ounce over a ten-year mine life.

In its pursuit to become a low-cost, multi-mine African-focused producer, Resolute is continuing to actively evaluate growth opportunities both internal and external to its existing portfolio.

Resolute’s share price is currently down a slight 0.63 per cent with shares trading for $1.18 at 12:29 pm AEDT.

RSG by the numbers
More From The Market Herald
Aurizon (ASX:AZJ) - Managing Director and CEO, Andrew Harding

" Aurizon (ASX:AZJ) slashes half-yearly dividend ahead of One Rail buyout, net profit down 4pc

Rail freight operator Aurizon (ASX:AZJ) has slashed its first-half dividend by nearly a third amid slightly…

" Aurizon Holdings (ASX:AZJ) reveals $1.3B refinancing deal

Aurizon Holdings (ASX:AZJ) has agreed to a restructured debt deal, giving the company access to some…

" Aurizon (ASX:AZJ) profits from failed ACCC appeal

Rail freight operator Aurizon (ASX:AZJ) can progress with the sale of its Acacia Ridge Terminal after…

" Aurizon (ASX:AZJ) to buy One Rail for $2.35b

Rail transport company Aurizon (ASX:AZJ) agrees to purchase One Rail Australia for $2.35 billion.