Resolute Mining (LSE:RSG)
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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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March 31, 2020 02:18 ET (06:18 GMT)