viewResolute Mining Limited

Resolute Mining recommences trading, issues first $146 million tranche of placement

In a vote of confidence, shares in Resolute are trading at a strong premium to the $1.10 capital raising price, last trading at $1.17 or a 6.3% premium.

Resolute Mining Limited - Resolute Mining recommences trading, issues first $146 million tranche of placement
Funds will be used to fully repay a $US130 million bridge loan

Resolute Mining Limited (ASX:RSG) has issued 132.7 million shares at $1.10 raising $146 million in the first tranche of its two-tranche placement and share purchase plan (SPP).

The combined capital raising plans to raise a combined $196 million.

As customary in these circumstances, the $25 million second tranche of the placement will require shareholder approval – a meeting has been set for 27 February 2020.

The remaining $25 million aims to be raised by an SPP, which will give eligible shareholders of Resolute an opportunity to bid for up to $30,000 worth of stock at the $1.10 issue price.

Proceeds will be used to fully repay the US$130 million Toro Gold bridge facility.

Placement received strong support

Resolute’s managing director and CEO John Welborn said: “We welcome the overwhelming support that has enabled the successful close of our A$146 million placement.

“Resolute received an exceptional level of interest from both new and existing institutional investors across Europe and Australia which saw the book many times oversubscribed.

“The heavily supported equity raise is an important endorsement of the company’s strategy and vision to create a leading innovative and responsible mid-tier African gold producer.”

Directors plan to buy shares alongside investors

Notably, Resolute directors intend to participate in the equity raising via tranche two after received shareholder approval at the upcoming general meeting.

Resolute produced 384,731 ounces of gold in the year ended 31 December 2019 and aims to produce 500,000 ounces in calendar 2020 at an all-in sustaining cost (AISC) of US$980 per ounce.

Given the recent sale of the Ravenswood Gold Mine in Queensland, Resolute expected to revise this guidance number once the sale is closed.

Resolute recently entered into definitive agreements to sell Ravenswood to an EMR Capital and Golden Energy and Resources for up to A$300 million.

The transaction is expected to close prior to the end of the March 2020 quarter.

Quick facts: Resolute Mining Limited

Price: 1.21 AUD

Market: ASX
Market Cap: $1.58 billion

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Resolute Mining Limited named herein, including the promotion by the Company of Resolute Mining Limited in any Content on the Site, the Company...



Resolute Mining CEO discusses new hybrid power station at its Syama Gold Project

Resolute Mining Limited's (ASX:RSG) (LON:RSG) managing director and CEO John Welborn speaks to Proactive's Andrew Scott at the Mines & Money conference in London 2019. This week the miner's announced they're to develop a new hybrid modular power station at their Syama Gold Project in...

on 26/11/19

2 min read