Resolute Mining Ltd - gold miner with assets in Africa - Enters agreement to sell Bibiani Gold Mine in Ghana to Asante Gold Corp for a USD90 million total cash consideration. Says Asante is an experienced explorer and developer of gold projects, including the Kubi Gold Project.
Notes receipt of USD30 million deposit. Says it will receive a further USD30 million within six months of completion and the final USD30 million payment within twelve months of completion. Says the agreement has received ministerial consent. Expects completion within ten days.
"The transaction is consistent with our strategic focus on our core operating assets and strengthening the balance sheet," says Chief Executive Stuart Gale.
In April, the company's attempted sale of Bibiani, to Chifeng Jilong Gold Mining Co Ltd for USD105 million, was cancelled by the buyer after the mining lease for the area was temporarily revoked.
Current stock price: 30.00 pence, up 3.6% on Thursday
Year-to-date change: down 36%
By Scarlett Butler; scarlettbutler@alliancenews.com
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Resolute Mining (RSG)