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ASX 200 rises above 7,000, Resolute Mining soars, Galaxy jumps

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The S&P/ASX 200 Index (ASX: XJO) went above 7,000 points today, rising by 0.66% to 7,023 points.

Here are some of the main highlights from the ASX:

Resolute Mining Limited (ASX: RSG)

The strongest performer within the ASX 200 today was the share price of Resolute Mining after making an announcement regarding the Bibiani mining lease. It went up by around 15%.

Ghana’s Minister for Lands and Natural Resources, Samuel Jinapor, notified the company that the mining lease for the Bibiani Gold Mine has been restored.

He made this decision having regard to Ghana’s standing as the largest gold producer in Africa and among the top seven producers in the world, and the need to maintain investor confidence globally and in particular maintain Ghana’s reputation as the preferred destination for mining investment in Africa.

However, Resolute Mining must agree to a number of conditions for the mining lease to be restored.

The miner noted that one of the things the Ghanaian government said was that it 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 that it intends to comply with the conditions imposed by the Minister.

The interim CEO of Resolute Mining, Mr Stuart Gale, said:

We are very pleased to have come back to a quick and amicable resolution which provides clarity and confirmation of Mensin Gold Bibiani Limited (MGBL)’s mining lease at the Bibiani Gold Mine. I would like to thank the Minister for his leadership and co-operation 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.

Vitalharvest Freehold Trust (ASX: VTH)

The Vitalharvest share price went up again today as the bidding war to buy it continued.

After the latest proposal from Roc to buy the units of Vitalharvest at $1.16 per share, or the assets for $329.6 million, Macquarie Group Ltd’s (ASX: MQG) Agricultural Funds Management (as trustee of the Macquarie Agriculture Fund – Crop Australia 2) decided to increase its offer from $1.12 per unit to $1.16 per unit, or the assets for $329.6 million.

The board will now yet again assess whether the Macquarie offer is the same or better than the improved Roc offer.

Galaxy Resources Limited (ASX: GXY)

The Galaxy Resources share price rose 8.3% today after giving a Sal de Vida resource and reserve update.

It has carried out an assessment of hydrogeological data from the drilling of two production wells leads, which has resulted in an increase in the resources and reserves.

The lithium miner announced a revised brine resource of 6.2 million tonnes of lithium carbonate equivalent (LCE), a 27% increase from the prior estimate.

Galaxy Resources said the revised reserve estimate was 1.3 million tonnes of recoverable LCE, a 13% increase.

The materials business said that higher grade brine was recovered in both wells.

The company said that production drilling will continue to test the aquifer at depth and a further update to the resource and reserve is expected in the third quarter of 2021.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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