Resolute Mining Limited Sale of Ravenswood Gold Mine Completed (1821I)
31 March 2020 - 5:18PM
UK Regulatory
TIDMRSG
RNS Number : 1821I
Resolute Mining Limited
31 March 2020
31 March 2020
Resolute Mining Limited
(Resolute or the Company)
Sale of Ravenswood Gold Mine Successfully Completed
Immediate value to Resolute of A$100m received
Potential future upside payments of up to A$200m
2020 Guidance updated to 430,000oz of gold at an AISC of
US$980/oz
Resolute Mining Limited (Resolute or the Company) (ASX/LSE: RSG)
is pleased to announce the successful completion of the sale of the
Ravenswood Gold Mine in Queensland (Ravenswood) to a consortium
comprising a fund (EMR Fund) managed by specialist resources
private equity manager EMR Capital Management Limited (EMR
Capital), and Singapore-listed mining and energy company, Golden
Energy and Resources Limited (SGX:AUE) (GEAR). The sale of
Ravenswood has been completed in accordance with the transaction
terms and timeline outlined in the definitive agreements signed in
January 2020 (see ASX Announcement dated 15 January 2020).
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. Resolute retains additional upside
exposure to Ravenswood through two further notes valued at up to
A$200 million which may result in payments to Resolute of:
-- up to A$50 million linked to the average gold price over a four-year period; and
-- up to A$150 million linked to the investment outcomes of Ravenswood for the EMR Fund.
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.
Resolute's Managing Director and CEO, Mr John Welborn, was
pleased to have completed the transaction:
"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 31 December 2020
Following the sale of Ravenswood, Resolute's updated guidance
for 2020 has been set at 430,000oz at an AISC of US$980/oz. This
guidance is consistent with previously released guidance for the
Syama Gold Mine in Mali of 260,000oz at an AISC of US$960/oz and
for the Mako Gold Mine in Senegal of 160,000oz at an AISC of
US$800/oz (see ASX Announcement dated 13 January 2020). Resolute's
2020 guidance is inclusive of corporate overheads, reflects gold
production from Ravenswood of 10,000oz, and is consistent with the
Company's recent COVID-19 business update (see ASX Announcement
dated 26 March 2020).
For further information, contact
John Welborn Jeremy Meynert
Managing Director & CEO General Manager - Business Development
& Investor Relations
Contact Information
Resolute Berenberg (UK Corporate Broker)
John Welborn, Managing Director Matthew Armitt / Jennifer Wyllie / Detlir
& CEO Elezi
Jeremy Meynert, General Manager Telephone: +44 20 3207 7800
- BD & IR Tavistock (UK Public Relations)
Telephone: +61 8 9261 6100 Jos Simson / Emily Moss / Annabel de Morgan
Email: contact@rml.com.au / Oliver Lamb
Web: www.rml.com.au Telephone: +44 207 920 3150 / +44 778 855
4035
Email: resolute@tavistock.co.uk
Authorised by Mr John Welborn, Managing Director & CEO
ASX/LSE: RSG Capital Board of Directors Contact
Summary Mr Martin Botha Non-Executive John Welborn Managing
Fully Paid Ordinary Chairman Director & CEO
Shares: 1,057,099,666 Mr John Welborn Managing Jeremy Meynert GM -
Current Share Price Director & CEO BD & IR
(ASX): Ms Yasmin Broughton Non-Executive Level 2, Australia
A$0.925 as at 30 March Director Place | 15-17 William
2020 Mr Mark Potts Non-Executive St
Market Capitalisation: Director Perth, Western Australia
A$978 million Ms Sabina Shugg Non-Executive 6000
2020 Guidance: Director T: +61 8 9261 6100
500,000oz @ AISC US$980/oz Mr Peter Sullivan Non-Executive | F: +61 8 9322 7597
Director E: contact@rml.com.au
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END
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