Resolute not affected by the termination of Bibiani

2021-04-07T13:46:52+00:00 April 7th, 2021|Bulletin|

ASX-listed Resolute Mining has emphasised that robust operating cash flow generation is expected to support the accelerated repayment of debt on or before the required due dates.

Resolute has emphasised that the termination of its mining lease for the Bibiani gold mine in Ghana will have no significant impact on the company’s guidance, nor will it affect Resolute’s ability to meet debt repayments.

Resolute Mining’s Syama gold mine in Mali. Photo by Resolute

Resolute Mining’s Syama gold mine in Mali. Photo by Resolute

According to a statement by Resolute, the total 2021 gold production from the company’s Syama gold mine in Mali, and its Mako gold mine in Senegal, together with operating cost and capital expenditure guidance, Resolute expects to generate sufficient operating cash flows to support debt repayments of USD50-million in 2021. This includes the early repayment of USD25-million over and above the minimum debt repayment obligations of USD25-million which are due in September 2021.

Proceeds from completion of the sale of Bibiani to Chifeng Jilong Gold Mining for USD105-million in cash were to be taken as an opportunity to rapidly accelerate Resolute’s debt repayments. However, these proceeds are not required to meet Resolute’s minimum debt repayment obligations which can be satisfied through operating cashflow generation from Syama and Mako.

Resolute continues to work through all options in relation to resolving its position with the Ghanaian Government regarding the termination of the Bibiani Mining Lease with the objective of reaching an amicable solution to restore the mining lease and enable the sale process with Chifeng to continue.