Resolute is pleased to announce that it has agreed to sell its interest in the Bibiani Gold Mine (Bibiani), through the sale of shares in Mensin Bibiani Pty Ltd, to Chijin International (HK) Limited, a wholly owned subsidiary of Chifeng, for total cash consideration of US$105 million.
Resolute and Chifeng are committed to ensuring an orderly transition of ownership at Bibiani. Chifeng is committed to injecting the necessary capital to achieve the rapid restart of Bibiani to ensure that all local and national stakeholders benefit from the economic and social advantages that the successful operation of the mine will provide. The transaction is not expected to result in any immediate changes to employment or contract relationships at Bibiani with Chifeng seeking to retain all existing local employees in future activities.
Resolute's Interim Chief Executive Officer, Mr Stuart Gale commented: '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.'
Chifeng's Executive Chairman, Mr Wang Jianhua commented: 'We are delighted to have secured such a significant gold mining asset in the current market. Resolute has defined an exciting future for Bibiani as a high margin, long life underground gold mining operation. Chifeng will immediately invest the required capital, and provide the necessary expertise, to recommission Bibiani as an operating gold mine in the shortest possible timeframe.'
Contact:
Stuart Gale
Tel: +61 8 9261 6100
Email: contact@rml.com.au
About Chifeng Jilong Gold Mining Co. Ltd
Chifeng is an international gold mining company listed on the Shanghai Stock Exchange with a market capitalisation of US$4.3 billion. It operates five assets, including the world class Sepon gold mine in Laos. In 2018, Chifeng acquired Sepon before undertaking significant capital expenditure to redevelop the gold processing facility in order to double its future gold production.
About the Bibiani Gold Mine
Bibiani is a historically significant Ghanaian gold mine situated in the western region of the country. Bibiani has been a major gold producer in Ghana. Bibiani has available mining and processing infrastructure on site consisting of a 3 million tonne per annum mill and processing plant, and existing underground mining infrastructure. Resolute acquired Bibiani in 2014 through a Scheme of Arrangement supported by the Ghanaian Government. The Company placed the mine on care and maintenance following the acquisition to complete exploration activities designed to enable the development of an economically viable, long term, larger scale underground operation. In July 2018, Resolute released an updated feasibility study for Bibiani. Current Mineral Resources at Bibiani consist of 21.7 million tonnes at 3.6 grams of gold per tonne for 2.5 million ounces of gold.
About Resolute
Resolute is a successful gold miner with more than 30 years' experience as an explorer, developer and operator of gold mines in Australia and Africa which have produced more than 8Moz of gold. The Company trades on the Australian Stock Exchange (ASX) and the London Stock Exchange (LSE) under the ticker RSG. Resolute currently operates the Syama Gold Mine in Mali and the Mako Gold Mine in Senegal.
Transaction Advisors
Cutfield Freeman & Co Ltd and Treadstone Resource Partners acted as financial advisors to Resolute while CCB International Ltd (CCBI) acted for Chifeng. Thomson Geer acted as legal advisors to Resolute while Zhong Lun and HWL Ebsworth advised Chifeng.
CHIFENG JILONG GOLD MINING CO.,LTD. 
