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Resolute Mining completes Mako royalty acquisition and placement to directors

Despite the current COVID-19 pandemic, Resolute has maintained its production guidance for 2020 which has been set at 430,000 ounces of gold.

Resolute Mining Limited - Resolute Mining completes Mako royalty acquisition and placement to directors
Resolute is on track to complete its ~$195 million equity raising by the end of this month

Resolute Mining Limited (ASX:RSG) (LON:RSG) has issued 14,983,476 shares as part of the second tranche of its January 2020 equity raising and 23,000,000 shares to fund the US$12 million acquisition of the royalty over the Mako Gold Mine in Senegal from Taurus Funds Management Pty Limited.

Background

Resolute had launched a ~$195 million equity raising in January 2020.

The equity raising comprised a two-tranche placement and a share purchase plan (SPP) both of which received strong support from new and existing shareholders.

The Tranche 1 institutional placement shares and the SPP shares were issued on January 30 2020 and March 3 2020 respectively.

The Tranche 2 placement shares were approved by the company’s shareholders at an Extraordinary General Meeting (EGM) held in February 2020.

Strong support from directors

The EGM approved the issue of a total of 22,727,273 Tranche 2 shares at a price of $1.10 per share which included allocation of shares to ICM Limited and the approval of issue of shares to Resolute’s managing director and CEO John Welborn, non-executive chairman Martin Botha and non-executive directors Yasmin Broughton and Sabina Shugg.

The issue of 14,983,476 Tranche 2 placement shares at a price of $1.10 includes 14,583,475 shares allotted to ICM and 400,001 shares allotted to Resolute directors.

A further 7,743,797 shares will be issued to ICM at a price of $1.10 at the end of April 2020 to complete the Tranche 2 placement and finalise the ~A$195 million equity raising.

Mako Gold Mine royalty acquired

Resolute has completed the acquisition of the Mako Royalty through the issue 23,000,000 shares at a price of $0.845 per share.

The royalty had an agreed termination value of US$12 million with consideration to be paid in cash or in Resolute shares.

Quick facts: Resolute Mining Limited

Price: 1.11 AUD

ASX:RSG
Market: ASX
Market Cap: $1.22 billion
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