The Canadian firm will pay the remaining $30m on or before 12 months from the deal completion.
Located in the west of Ghana, the Bibiani underground mine is owned by Mensin Gold Bibiani Limited (MGBL), a wholly owned subsidiary of Resolute Mining. The Ghanaian Government is entitled to a 10% free carried interest in MGBL.
Asante president and CEO Douglas MacQuarrie said: “Bibiani is a sleeping giant – essentially unmined and on care and maintenance since Ashanti Goldfields exited the project in 2006 when gold was just $650 per ounce. 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 5Moz (21.7 million tonnes grading 3.6g/t) of gold in current JORC resources and Asante has recognised additional exploration upside opportunities, both from near-surface and underground targets.”
Resolute plans to use the initial cash receipt of $30m to repay debt.
The transaction, which has been approved by Ghana’s Minister of Lands and Natural Resources, is planned to complete in the next ten days.
As a result, China’s Chifeng Jilong Gold Mining cancelled a deal to acquire the mine. The firm cited it had not received timely information about the mining lease termination.