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Resolute Mining secures US$100 million revolving loan facility from Investec

The rates, fees and terms agreed for the new facility are highly competitive.
Low cost funding for new growth initiatives

Resolute Mining Limited (ASX:RSG) has secured a US$100 million revolving loan facility from Investec Australia Limited.

The new facility provides Resolute with flexible access to low cost funding for new growth initiatives.

Resolute has previously operated senior secured credit facilities with a banking syndicate which has included Citi, Barclays, Societe Generale, Macquarie, and Investec.

READ: Resolute Mining achieves guidance and forecasts 300,000 ounces in FY19

The most recent secured debt facility was a US$50 million cash advance facility jointly provided by Barclays and Investec which was fully repaid in June 2016.

The new facility is fully underwritten by Investec, has an initial three-year term, and ranks pari passu with the existing banking syndicate security trust deed.

READ: Resolute Mining hits 493 g/t gold over 5 metres at Syama Gold Project in Mali

The rates, fees and terms agreed for the new facility are highly competitive and provide Resolute with access to flexible growth capital at an attractively low cost.

Resolute managing director and chief executive officer John Welborn said: “This revolving credit facility ensures Resolute has the financial flexibility to pursue our growth agenda and act on opportunities as they arise.

“We maintain a strong balance sheet and ensuring a modest level of gearing is available to the company is a sound and appropriate strategic decision given our ambitions and outlook.”

READ: Resolute Mining’s updated study cuts underground gold mine costs by US$135 per ounce

Welborn added: “Resolute has always maintained strong relationships with our banking syndicate and I thank Investec for their support and vote of confidence.”

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