Africa-focused miner Resolute Mining has signed a binding agreement to sell the Bibiani Gold Mine in Ghana for $105m.

The mine will be acquired by Chijin International (HK), a wholly-owned subsidiary of Chifeng Jilong Gold Mining.

As agreed, Resolute will receive $5m deposit on signing the agreement and the remaining $100m on completion.

Resolute interim CEO Stuart Gale said: “Resolute is proud of its contribution to Ghana and pleased that our investments at Bibiani in exploration, feasibility studies, and community support will provide a strong base for future success and value creation. I am confident that Resolute’s positive legacy in Ghana, and the interests of all stakeholders in Bibiani, will be protected and enhanced under Chifeng’s ownership.”

“The transaction is consistent with our strategic focus on our core operating assets together with balance sheet improvement.”

The Bibiani mine is located in the western region of Ghana. Resolute acquired the mine in 2014 and placed it on care and maintenance for exploration activities. An updated feasibility study for Bibian was released in July 2018.

Currently, mineral resources at Bibiani comprise 21.7 million tonnes at 3.6 grams of gold per tonne for 2.5 million ounces of gold.

Once the deal is complete, Chifeng plans to invest necessary capital resume operations at Bibiani. The Chinese firm also plans to retain all existing local employees for future activities.

The deal is expected to close by March next year, subject to government approvals and other conditions.

In the quarterly period that ended on 30 September, Resolute Mining reported a 19% drop in production.