Resolute in talks to sell Ravenswood gold mine to EMR Capital
Australia’s Resolute Mining (ASX:RSG) confirmed on Monday that is in advanced talks with private equity fund EMR Capital Management over the sale of Ravenswood gold mine in Queensland, Australia.
The transaction would see EMR paying A$100 million upfront and up to A$200 million in additional deferred consideration, subject to production milestones and future gold prices.
The two firms signed an exclusivity arrangement, which expires on Wednesday.
EMR is also said to be preparing the sale of a few copper and gold assets, which may include Capricorn Copper mine in Queensland and the Golden Grove mine in Western Australia.
The gold miner, which set overall output target for 2020 at 500,000 ounces, said in a production update that completion of stage 1 of the Ravenswood Expansion Project, or REP, had increased processing capacity to 5 million mt/year. The upgrade, it noted, allows a production target for 2020 of 80,000 ounces of gold at an all-in sustaining costs (AISC) of $1,200 per ounce.
Stage two of the expansion would see the Perth-based miner’s target production of 200,000 ounces a year for 15 years from 2022.
Ravenswood, located about 95km southwest of Townsville, is made up of multiple open pits to support large scale, long-term gold production beyond the life of the existing Mt. Wright underground mine.
Resolute Mining churned out last year 384,731 ounces of gold, or 4% less than the expected 400,000 ounces. AISC reached $1,09 per ounce, compared to a cost guidance of $1,020 per ounce.