Resolute buys out Ashanti’s stake at Golden Pride

Australian-based Resolute will pay US$40 million for the remaining half-interest in the Golden Pride mine that it does not already own. The half-interest in the Tanzanian mine is currently held by Ashanti Goldfields (ASL-N).

The mine began pouring gold in December 1998 and is expected to produce 180,000 oz. per year at a cash cost below US$200 per oz.

Ashanti will also transfer to Resolute its 51.25% interest in Harrier Mining, which owns the Nzega and Matinge concessions adjacent to Golden Pride. Resolute will also receive mining and exploration rights to the Abruoya and Miradani concessions, which are next to the company’s Obotan gold mine in southwestern Ghana.

Ashanti sold its stake in Golden Pride partly to focus on developing the Geita project in the Lake Victoria gold fields of northern Tanzania.

The transaction has yet to be approved by the governments of Tanzania and Ghana.