Resolute closes Ravenswood mine sale

The Ravenswood gold mine is 95km southwest of Townsville and 65km east of Charters Towers in northeast Queensland. (Image courtesy of Resolute Mining)

Australia’s Resolute Mining (ASX, LSE: RSG) has completed the sale of its Ravenswood gold mine in Queensland to a consortium comprising private equity management firm EMR Capital and Singapore-listed mining company Golden Energy and Resources (GEAR).

In January, the parties entered a definitive agreement under which Resolute will sell the Ravenswood mine for up to A$300 million. The sale was completed in accordance with the terms and timeline outlined in the agreement.

Resolute has received A$100 million in upfront proceeds consisting of A$50 million in cash and A$50 million in promissory notes. The company is entitled to further notes that could be worth up to A$200 million, contingent on gold prices and future growth, Ravenswood said.

Up to A$50 million of the additional consideration will be linked to the average gold price over a four-year period, and up to A$150 million will be linked to the investment outcomes for EMR.

“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 over two million ounces of gold,” Resolute managing director and CEO John Welborn said in a media release.

Welborn added that the sale of Ravenswood would enable the company to focus on its African portfolio and other opportunities.

On the completed sale, Resolute upgraded its production guidance for 2020 to 430,000 ounces at an all-in sustaining cost of $980/oz.

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