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RSG - Resolute Mining News Story

32.8p 1.8  5.8%

Last Trade - 10/05/21

Sector
Basic Materials
Size
Small Cap
Market Cap £327.5m
Enterprise Value £479.4m
Revenue £427.0m
Position in Universe 707th / 1828

Resolute Mining's Ghana mine lease restored, shares jump

Wed 14th April, 2021 6:47am
April 14 (Reuters) - Australian gold miner Resolute Mining
 RSG.AX  said on Wednesday that the mining lease for its Bibiani
gold mine in Ghana has been restored after being terminated last
month. 
    Resolute's shares gained as much as 20.2% to A$0.565, and
were set for their best day since March 25, 2020.
    Last month the company called the termination of the lease
"unexpected" and said it was seeking a clarification with the
Ghanaian government. 
    The terms of the lease restoration do not recognise the sale
of Bibiani to Chifeng Jilong Gold Mining  600988.SS . Resolute
had agreed to sell the mine to the Chinese firm for $105 million
in December last year.  urn:newsml:reuters.com:*:nL1N2IV0IR
    Any transfer of a right in the mine to a third party would
require approval from the Ghanaian government, the company said.
    "Although we believe a sale of the asset to be the preferred
choice, if RSG were to develop the project solely, timing of
cash flow outflow (or financing alternatives) would be key,"
Brokerage RBC said. 
    "We believe investors will again attribute value to the
asset, which we previously saw as non-core to the portfolio,"
RBC added.  
    Resolute will work with the Ghanaian government to identify
development options to resume production at Bibiani, interim
Chief Executive Officer Stuart Gale said.
    The company previously said it expects Bibiani, once
developed, to produce 100,000 ounces of gold a year over a
10-year life of mine.

 (Reporting by Arundhati Dutta in Bengaluru; Editing by Shailesh
Kuber)
 ((Arundhati.Dutta@thomsonreuters.com))
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