China’s Chifeng Jilong Gold Mining has terminated the $105m deal signed last year with Resolute Mining to acquire the Bibiani gold mine in Ghana.
The move comes as Resolute Mining failed to timely inform Chifeng Jilong Gold Mining about the mining lease termination earlier this year by the Ghanaian Government.
At that time, Resolute Mining said it had received a letter from the Ghanaian Minerals Commission to terminate the lease.
The Australian firm, however, said it recently restored the lease but subject to a number of conditions.
One of the conditions include acknowledgement and acceptance by Resolute and its subsidiary Mensin Gold Bibiani (MGBL), which owns the Bibiani underground mine, that the Ghanaian Government does not recognise the Bibiani mine sale or transfer to Chifeng.
Resolute has now been asked by Chifeng to make a $5m refund.
In a press statement, Resolute Mining said: “Resolute will continue to consider all options for the successful development or sale of Bibiani and will provide further information in accordance with continuous disclosure requirements, as required.”
The sale deal signed between Resolute and Chifeng late last year was subject to various approvals and conditions. It was expected to be closed in the first quarter of this year.
Shortly after the acquisition by Resolute in 2004, the Bibiani mine was placed on care and maintenance to undertake further exploration activities.