Resolute said the action on behalf of the Minister of Lands and Natural Resources had been unexpected, and that the company was seeking clarification from the Minister’s office.
The miner announced in December that it had agreed to sell the gold mine to China’s Chifeng Jilong Gold Mining for $105 million cash.
The company acquired Bibiani in 2004 but placed the mine on care and maintenance shortly after to allow exploration activities to develop the asset into a large-scale operation.
Resolute changed tune in January 2020, launching a review of the mine to determine whether to keep it or sell it to a company “in better place” to keep the gold mine running.
A 2018 feasibility study into a Bibiani restart estimated that the project could produce some 100,000 ounces per year over a ten-year mine life, at a total capital cost of around $115 million.
The project is currently estimated to host some 21.7-million tonnes, grading 3.6 g/t gold for 2.5-million ounces of contained gold.
Midday Wednesday, Resolute’s stock was down nearly 24% on the LSE. The company has a $415 million market capitalization.
