(Yicai Global) March 25 -- Shares of Chifeng Jilong Gold Mining dropped after the Chinese gold company said Ghana’s government had unexpectedly terminated its USD108.9 million deal to buy the African country’s Bibiani gold mine from Australia’s Resolute Mining.

Inner Mongolia-based Chifeng Gold [SHA:600988] closed 4.2 percent lower today at CNY14.76 (USD2.26), having fallen by as much as 5.8 percent earlier in trading.

Chifeng Gold had notice from Resolute Mining late yesterday that the Ghanaian Minerals Commission had ordered it to abandon its agreement to sell the wholly owned unit that owns the Bibiani mine to the Chinese firm.

Chifeng Gold said at the time the deal was struck in December that it would help the company enter West Africa, an important international gold-mining region.

It is not yet know why the deal has been nixed, Chifeng Gold said, adding that Resolute Mining has been told to stop all activities at the mine, which has been closed since 2013 when production was halted because of a sharp fall in gold prices.

Resolute Mining is seeking legal advice and clarification, the statement said, while Chifeng Gold is evaluating the situation.

Editor: Tom Litting