Ghanaian Honorable Minister for Lands and Natural Resources the Hon. Samuel A. Jinapor has restored the mining lease for the Resolute Mining Ltd.’s Bibiani gold mine.

The minister said the lease was reinstated to maintain Ghana’s standing as the largest gold producer in Africa and among the top seven producers in the world and investor confidence globally and its reputation as the preferred destination for mining investment in Africa.

Under the reinstatement, the Ghanaian government said it does not recognize the sale of the Bibiani gold mine to Chifeng Jilong Gold Mining Co. and any interest in the mine to Chifeng or any third party will be deemed invalid without the express prior approval of the government. The company announced the sale back in December for total cash consideration of $105 million.

Resolute and Mensin Gold Bibiani Ltd. (MGBL), a subsidiary of Resolute, must, within seven days, submit to the Ghanaian Minerals Commission a report detailing the full state of affairs at the mine including the environment, health and safety conditions, in accordance with the Ghanaian Minerals and Mining Act 2006 and a detailed plan for the redevelopment of the mine with timelines and investment requirements.

Resolute said it intends to comply with the conditions imposed by the minister.

“We are very pleased to have come to a quick and amicable resolution, which provides clarity and confirmation of MGBL’s mining lease at the Bibiani gold mine,” Resolute Interim CEO Stuart Gale said. “I would like to thank the minister for his leadership and cooperation on this matter and we look forward to working with him and the Minerals Commission to identify a development option at Bibiani, which sees the mine resuming production as quickly as possible for the benefit of all stakeholders.”

He added that the company remains committed to the development of Bibiani and will consider all options available to achieve this.