Perth gold company Resolute Mining is set to become the owner of the Bibiani gold project in Ghana from Noble Mineral Resources.
Resolute will hold a 90 per cent interest in the advanced West African gold project, which has a substantial resource base, established infrastructure, and historic production in excess of 4 million ounces of gold.
The Ghanaian government will hold the remaining 10 per cent interest in accordance with the Ghanaian mining code.
“Taking ownership of Bibiani represents a significant milestone for Resolute and is a key step forward in our quest to restart the project for the benefit of all stakeholders,” Resolute chief executive officer Peter Sullivan said.
Resolute will undertake a feasibility study for an underground operation, which planned to be completed within 24 months.
Work start promptly on a drill program to better delineate the underground resource.
Bibiani will continue under care and maintenance while the feasibility study is progressed.
The former employees of the Ghanaian subsidiaries of Noble will be paid their entitlements in accordance with the terms agreed, which will involve initial payments of about $US10 million with a further $US5 million over the next 12 months.
Resolute’s share price rose by 4 per cent to 65 cents at 11:45am WST.