April 14 (Reuters) - Australian gold miner Resolute Mining RSG.AX said on Wednesday that the mining lease for its Bibiani gold mine in Ghana has been restored after being terminated last month.
Resolute's shares gained as much as 20.2% to A$0.565, and were set for their best day since March 25, 2020.
Last month the company called the termination of the lease "unexpected" and said it was seeking a clarification with the Ghanaian government.
The terms of the lease restoration do not recognise the sale of Bibiani to Chifeng Jilong Gold Mining 600988.SS . Resolute had agreed to sell the mine to the Chinese firm for $105 million in December last year. transfer of a right in the mine to a third party would require approval from the Ghanaian government, the company said.
"Although we believe a sale of the asset to be the preferred choice, if RSG were to develop the project solely, timing of cash flow outflow (or financing alternatives) would be key," Brokerage RBC said.
"We believe investors will again attribute value to the asset, which we previously saw as non-core to the portfolio," RBC added.
Resolute will work with the Ghanaian government to identify development options to resume production at Bibiani, interim Chief Executive Officer Stuart Gale said.
The company previously said it expects Bibiani, once developed, to produce 100,000 ounces of gold a year over a 10-year life of mine.