Resolute Mining announced that it is in advanced talks with Melbourne private equity fund EMR Capital Management regarding sale of Ravenswood gold mine in Queensland, Australia. It must be noted that the exclusivity agreement signed between the two parties is due to expire on 15th January, 2020.
The sale deal could be worth up to A$300 million. Consequently, EMR will pay A$100 million upfront. The remaining A$200 million, in additional deferred consideration, will be paid subject to future gold price outcomes and production milestones. However, Resolute noted that there is currently no certainty that a final sale agreement will be reached between the two parties.
Resolute Mining had recently announced that it has completed the first stage of the Ravenswood Expansion Project, raising the processing capacity to 5 million mt per year, thereby allowing for production of 80,000 ounces of gold in 2020. The second stage of the expansion aims to increase the target production of 200,000 ounces per year for a period of 15 years starting 2022.
Ravenswood Gold Mine, located 95 kilometres south-west of Townsville and 65 kilometres east of Charters Towers in north-east Queensland, Australia is a proven producing asset with multiple open pits.