Resolute Mining initiates strategic review of Bibiani

Resolute said the purpose of the strategic review was to review 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 AIM-listed group has engaged Cutfield Freeman & Co and Treadstone Resource Partners as advisors to conduct the strategic review during the first half of 2020 and explore various options for Bibiani including the off-balance sheet financing of Resolute's proposed recommissioning plan, joint ventures and the partial or complete divestment of the asset.

Resolute added that the strategic 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.

In pursuit of its ambition to be a low-cost, multi-mine African-focused producer, Resolute added that it was continuing to actively evaluate growth opportunities both internal and external to its existing portfolio.

As of 1000 GMT, Resolute shares were down 4.75% at 60.11p.