Resolute completes initial capital raise
Monday, November 14th, 2022
Gold miner Resolute Mining has completed the book-build for the institutional component of its previously announced capital raise, and has upsized the underwritten component of its equity raise from A$140-million to A$164-million.
Resolute on Monday said that the bookbuild for the institutional placement and the institutional component of its 1-for-1.11 accelerated non-renounceable entitlement offer had been completed, with the placement raising A$41-million through the issue of 258-million shares, and the institutional entitlement offer raising A$55-million through the issue of 342-million shares.
The company told shareholders that given the strong demand received during the bookbuild period, the underwritten component of the equity raise had been increased from A$140-million to A$164-million.
Some A$144-million of the proceeds will go towards reducing company debt, with A$20-million going towards funding general working capital, the cost of the equity raise, and to support the Syama North expansion plans, in Mali.
“We are delighted by the strong support the company has received for the equity raising from both local and international institutions, including several new Tier 1 institutions, all of whom share our exciting vision for the company,” said MD and CEO Terry Holohan.
“This strong support reflects the confidence in Resolute’s transition to a sustainable gold producer and will allow the company to derisk its balance sheet. The company is now positioned to pursue a new openpit operation at Syama North, together with low capital expansion options for the sulphide circuit and continue to systematically grow.”
Meanwhile, the retail entitlement offer of A$105-million, of which A$68-million is underwritten, will open on November 17 and close on December 5.