The Resolute Mining Limited (ASX: RSG) share price is shining right now, up 15%.
Why is the Resolute Mining share price up so much?
The gold miner revealed that the the Ghana minister responsible for its mining lease has restored the Bibiani gold mine lease.
Mr Jinapor was thinking about maintaining investor confidence globally in Ghana’s reputation as the preferred mining destination in Africa when he made this decision.
But it comes with a few conditions.
Resolute Mining’s Ghana subsidiary must acknowledge and accept that the mining lease was terminated, that the government does not recognise the purported sale or transfer of the mine to Chifeng Jilong Gold Mining, that Resolute must (within 7 days) give a report about the state of affairs at the mine and also a plan about the redevelopment of the mine with timelines and investment requirements.
The minister also requires any changes to the mine’s ownership to a third party will require the approval of the government.
The final point was that the Ghanaian Government objects to the purported sale or transfer to Chifeng and the creation of any interest in the mine to Chifeng or any third party will be deemed invalid without the express prior approval of the government.
Resolute said it intends to comply with the conditions.