Shares of Australian gold mining firm, Resolute Mining, on the London Stock Exchange (LSE) on Wednesday, March 24, fell by 24.7 percent, hitting a record low since its listing in the late 1990s.
The fall in share price follows the termination of the company’s mining lease for the Bibiani gold mine in Ghana.
Reports have it that the termination of the mining lease was a directive from the Ministry of Lands and Natural Resources.
The mining firm has been ordered to cease all activities and operations at the Bibiani gold mine site.
Resolute 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.
