Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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Sale of Bibiani Gold Mine for $90 million in cash
· Resolute has entered into an agreement to sell the Bibiani Gold Mine in Ghana to Asante Gold Corporation.
· Cash consideration paid in $30 million deposit (already received by Resolute to be applied upon completion) and further
$30 million on or before 6 months from completion; and $30 million on or before 12 months from completion.
Importantly "The agreement has received Ministerial Consent, having been approved by the Ghanaian Honourable Minister of Lands and Natural Resources"
Completion expected 10 days from now, mark the 19th August in your books (assuming it's working days)
Asante are already well established in Ghana and have a strong track record of community involvement schemes as well as being a popular company among Ghanaian nationals, soon to be listed on the Ghana Stock Exchange. So this is a good outcome for the Ghanaian authorities and people.
The impression I got back in April was that Ghanaian assets were going to stay with tried and trusted partners but in fact it looks like it the licence restoration was perhaps engineered to bring Asanta on board as the only viable option.
Resolute and Asante are committed to ensuring an orderly transition of ownership at Bibiani. Asante is dedicated to injecting the necessary capital to achieve the rapid restart of Bibiani, which is not expected to result in any immediate changes to employment or contract relationships.
The Ghanaian Honourable Minister for Lands and Natural Resources, Hon. Samuel A. Jinapor, MP (the Minister), commented: "I commend the recent approach of Resolute and Asante in their dealings with the Ministry for Lands and Natural Resources and am pleased to support the transition of ownership of Bibiani to Asante."
Note Stuart Gale's comment: "Resolute is .. particularly proud to have the opportunity to transfer ownership in Bibiani to a highly regarded team with strong ties to Ghana."
But this is an optimum outcome for Resolute, soon to benefit from a $90 million gross injection over the coming year which reduces the risk of loan covenant breach to nil and firms up the balance sheet.
Asset sold for 90m should increase the mkt cap as it fell on news originally
Sylvania Platinum (AIM: SLP) is pleased to announce the appointment of Mr. Adrian Reynolds as Independent Non-executive Director, with effect from 1 August 2021.
One of our directors joining the board of Cash rich SLP eh?and here we are with a little old Gold mine to sell or develop?
I'm sure there will be some clause they don't loose 10m what management would be that daft to loose 10m on things out of their control. Ie having the licence revoked from the authority
Well today's announcement confirms the termination of Chifeng's interest. Still there is now the possibility of Resolute offering equity in either the group or more likely the Bibiani asset only for investment to further the development there. In some ways this could be a positive turn of events if Resolute are able to attract funding and garner the support of the government, which it seems to have now.
I doubt this is the end of dealings with Chifeng or connected parties. It's just the beginning of negotiations under new state policy of tightened restrictions concerning asset sales. Thankfully common sense prevails and no long term damage has been inflicted on the reputation of the Ghanaian mining industry. The recent land and mining reforms might turn out to be a blessing in the long run if Resolute are one of a few trusted miners permitted to operate within the country.
There was a $10M break fee for the deal so I guess RSG will have pay this out if they cannot sell to Chifeng.
It looks like they will need to find another purchaser for the price to return where it was-
'the Ghanaian Government objects to the purported sale or transfer to Chifeng and the creation of any interest
in the mine to Chifeng or any third party will be deemed invalid without the express prior approval of the
Government'
It is much better news for the company than not having the lease but they will either need to find the money to develop the site or find someone the Ghanaians are happy to take it over.
The company have been able to push out the timeline for needed the funding for the second underground mine in Mali so they do have some leeway to be able to sort this all out.
Price is @30p on asx
I’m guessing rsg will see 39p very soon.
This explains the rise in the share price yesterday.