HomeBusiness and policyAsante acquires Bibiani gold mine

Asante acquires Bibiani gold mine

Asante’s President & CEO, Douglas MacQuarrie commented:

“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 Mt grading 3.6 g/t) of gold in current JORC resources and 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.”

“Asante is already exploring on site and building the management and operations team with a view to bring the Bibiani mine back to production within the next year. Further discussions are underway to fully fund the acquisition and its’ development using non-dilutive financing.”

“We are also happy to welcome two cornerstone investors to our share register and our Advisory Board – Emiral Resources, represented by founder and Board member Boris Ivanov, a UAE based group of companies engaged in mineral exploration and production in various parts of Africa, and in consulting and engineering services for the oil & gas industry worldwide; and Fujairah Holdings, represented by Mohammad Al Othman, CEO, a global investment firm that manages a diversified investment portfolio dedicated to generating steady returns and prudently growing capital through a disciplined investment process. Fujairah Holdings is based in Al Hilal City, Emirate of Fujairah.”

“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.

Resolute’s MD & CEO, Stuart Gale commented:

“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.