The Ghanaian government has backed Chifeng Gold's acquisition of Wassa, with the mining lease set to expire in September 2022.
Chifeng Gold has reportedly received approval from Ghana to proceed with its $470m cash acquisition of Golden Star Resources. It owns 90 per cent of the Wassa gold mine in south-west Ghana. The Ghanaian government owns the remainder of the mine.
In a statement, the Ghanaian government said it had "no objection" to Chifeng Gold becoming the controller of Wassa.
Wassa's 30-year mining lease expires in September 2022. The mine will produce 168,000 ounces of gold in 2020.
Chifeng gold said this was not a concern as Ghana's Ministry of Land and Natural Resources had indicated it would grant an extension if an application was made.
Chifeng last year tried to buy another gold mine in Ghana, The Bibiani mine operated by Resolute Mining.
But the acquisition collapsed when the Ghanaian government abruptly cancelled the mining lease and ordered Resolute to cease mining.
Although the lease was later reinstated, Chifeng eventually dropped its bid and Bibiani was later acquired by Canada's Asante Gold.
Outside China, Chifeng gold already operates the Sepon gold and copper mine in Laos and in September agreed to invest A $2m (US $1.5m) in Metalstech of Australia.
