Resolute has received A$100 million of upfront proceeds consisting of A$50 million in cash and A$50 million in promissory notes which earn a 6% coupon.
Potential future upside payments of up to A$200 million
Resolute Mining Limited has successfully completed the sale of the Ravenswood Gold Mine in Queensland to a consortium.
The consortium comprises a fund managed by specialist resources private equity manager EMR Capital Management and Singapore-listed mining and energy company, Golden Energy and Resources Ltd .
Resolute has received $100 million of upfront proceeds consisting of $50 million in cash and $50 million in promissory notes which earn a 6% coupon.
The company retains additional upside exposure to Ravenswood through two further notes valued at up to $200 million.
The sale of Ravenswood provides immediate liquidity and exposure to the future success of the Ravenswood Expansion Project while transferring the capital expenditure funding requirements and development obligation to a highly credentialed and experienced consortium with a strong relevant track record in successful project development.
Focus on African portfolio
Resolute managing director and CEO John Welborn said: “The sale of our Ravenswood Gold Mine delivers on our objective of ensuring a new long-life future for Ravenswood while maximising value for Resolute shareholders.
“Settlement enables us to focus our attention and energy on our African portfolio and the abundant opportunities for further growth and value creation.”
“Ravenswood has been a strong performer for Resolute for more than 15 years. During this time Resolute has mined and processed over 40 million tonnes of ore and produced almost two million ounces of gold.
“I congratulate the Resolute team, both past and present, for our performance at Ravenswood. We are proud of our achievements in Queensland and the significant economic benefits we have provided to the local community, the government, and Resolute shareholders.
“We are confident Resolute’s legacy, and the interests of all stakeholders in Ravenswood, will be protected and enhanced by the new owners.”
Updated guidance for the 12 months to December 31, 2020
Following the sale of Ravenswood, Resolute’s updated guidance for 2020 has been set at 430,000 ounces of gold at an all-in sustaining cost (AISC) of US$980/ounce.
This guidance is consistent with previously released guidance for the Syama Gold Mine in Mali of 260,000 ounces at an AISC of US$960/ounce and for the Mako Gold Mine in Senegal of 160,000 ounces at an AISC of US$800/ ounce.