This is designed to review Resolute’s plans to recommission the mine, assess capital requirements, evaluate funding alternatives and investigate recently received expressions of interest from third parties seeking to acquire the asset.
The company has engaged Cutfield Freeman & Co Ltd and Treadstone Resource Partners as advisors to conduct the review of the mine, which is on care and maintenance, during the first half of 2020.
They will explore various options including the off-balance sheet financing of Resolute’s proposed recommissioning plan, joint ventures and partial or complete divestment of the asset.
Bibiani, an historically significant gold mine in Ghana’s west, has been a major gold producer in the region.
Infrastructure on site
There is mining and processing infrastructure on-site consisting of a 3 million tonnes 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 then placed the mine on care and maintenance to complete exploration designed to enable the development of an economically viable, long-term, larger-scale underground operation.
In July 2018, an updated feasibility study demonstrated the potential for Bibiani to annually produce around 100,000 ounces at a life-of-mine AISC of US$764 per ounce over a 10-year mine life.
Bibiani hosts resources of 21.7 million tonnes at 3.6 grams of gold per tonne for 2.5 million ounces of gold.
Resolute said the review would seek to maximise value for shareholders while ensuring that all local stakeholders in Ghana continued to benefit from the essential economic and social advantages that re-establishing successful and sustainable operations at Bibiani would provide.
This review comes as Resolute continues to pursue its ambition to become a low-cost, multi-mine African-focused producer supported by production from Syama mine in Mali and Mako mine in Senegal, along with the Ravenswood mine in Queensland.
Pathway to 500,000 ounces
Resolute has a pathway to annual gold production in excess of 500,000 ounces from a global mineral resource base of more than 18 million ounces of gold.
In support of this ambition, the company continues to evaluate growth opportunities both internal and external to its existing portfolio.
Production and cost guidance for the 12 months to December 31, 2019, is 400,000 ounces of gold at an AISC of US$1,020 per ounce.