Resolute Sells Ravenswood Gold Mine for AU$300 Million

Resolute Mining has sold its Ravenswood gold mine to EMR Capital and Gold Energy and Resources for proceeds of up to AU$300 million in cash. 

Resolute Mining (ASX:RSG,LSE:RSG,OTC Pink:RMGGF) has sold its Ravenswood gold mine to EMR Capital and Gold Energy and Resources (SGX:AUE) for proceeds of up to AU$300 million in cash.

Highlights are as follows:

  • Resolute has signed definitive agreements for the sale of the Ravenswood gold mine in Queensland to a
    consortium comprising a fund managed by private equity manager EMR Capital and leading energy and mining
    company Golden Energy and Resources.
  • Sale proceeds of up to AU$300 million in cash to be received by Resolute comprising AU$100 million of upfront
    value and up to AU$200 million in potential payments contingent on future gold prices, future gold production from
    the Ravenswood Gold Mine, and the investment outcomes from the Ravenswood Gold Mine for EMR Capital.
  • EMR Capital, led by executive chairman Owen Hegarty and CEO Jason Chang, is a globally
    leading specialist resources focused private equity group with outstanding credentials and a track record of
    achievement as a developer and operator of Australian-based mining assets.
  • GEAR is a leading energy and resources company in Asia Pacific that is listed on the Singapore Stock Exchange
    with producing coal assets in Indonesia and strategic stake investments in two ASX-listed mining companies.
  • EMR Capital and GEAR are committed to progressing the Ravenswood expansion project.
  • No immediate changes to Ravenswood gold mine employment or contract relationships, with current mine plan
    and development plans to continue.
  • The divestment provides strategic clarity and is consistent with Resolute’s ambition of being a low-cost multimine African-focused gold producer.
  • Transaction terms maximise financial returns for Resolute from the Ravenswood Gold Mine with no future capital
    or funding requirements.
  • Resolute will receive cash proceeds of up to AU$300 million comprising:
    • AU$100 million of upfront value consisting of AU$50 million of cash and AU$50 million in promissory notes;
    • up to AU$50 million linked to the average gold price over a four-year period (gold price contingent payment); and
    • up to AU$150 million linked to the investment outcomes of Ravenswood for the EMR Fund (upside sharing

John Welborn, managing director & CEO, commented:

The sale of our Ravenswood Gold Mine on the terms announced today provides the opportunity for exceptional value for Resolute shareholders. We have strengthened our balance sheet with a combination of immediate cash and the potential for future upside as well as removing the requirement of a large near-term capital investment. The divestment has strong strategic merit for Resolute. We have delivered on our objective of ensuring a new long-life future for Ravenswood under a world-class operator and can now focus our attention and energy on our African portfolio and the abundant opportunities our experience provides for further growth and value creation.

Click here to read the whole Resolute Mining (ASX:RSG,LSE:RSG,OTC Pink:RMGGF) press release.

Petratherm Limited Announces Filing of Early Warning Report Related to the Disposition of Common Shares of Outback Goldfields Corp.

Petratherm Limited (ASX: PTR) (“Petratherm”) announces that it has filed an early warning report (the “Report”) announcing that it has disposed of 33,333,333 common shares (the “Disposed Shares”) of Outback Goldfields Corp. (CSE:OZ) (formerly, Skarb Exploration Corp.) (“Outback Goldfields“). Petratherm acquired the Disposed Shares as consideration for the sale of its gold projects located in Victoria, Australia. Unless permitted under securities legislation, Petratherm must not trade the common shares before April 16, 2021. Following the expiry of this restriction period, Petratherm distributed all of the Disposed Shares in specie to its shareholders effective today. Following the disposition of the Disposed Shares, Petratherm holds nil shares of Outback Goldfields.

This press release is being issued pursuant to National Instrument 62-103 – The Early Warning System and Related Take-Over Bids and Insider Reporting Issues in connection with the filing of the Report by Petratherm.

Keep reading... Show less

AU$4 Billion Galaxy/Orocobre Merger to Create Top 5 Lithium Company

Australia’s Orocobre (TSX:ORL,ASX:ORE) and Galaxy Resources (ASX:GXY,OTC Pink:GALXF) agreed this week to join forces in a AU$4 billion “merger of equals.” The deal comes as demand for lithium for electric vehicle (EV) batteries continues to pick up pace.

Once the merger is complete, the new company will become a top five lithium chemicals company globally — and top three outside of China — with production capacity of around 40,000 tonnes of lithium carbonate equivalent per year.

“The merged entity’s growth opportunities in both brine and hard rock position it uniquely to take advantage of expected rising EV demand for lithium,” Galaxy Chairman Martin Rowley said.

Keep reading... Show less

IIROC Trading Halt – TMRR

The following issues have been halted by IIROC:

Company: Tempus Resources Ltd.

Keep reading... Show less

Cleantech Investing in Australia

Climate change is a looming issue for Australians, with 82 percent concerned about bushfires and 81 percent worried that drought or flooding will affect crop production and food supply.

This is where conscious investors look to the cleantech sector, which covers everything from renewable energy to low-emission technologies to water technology to battery storage and more.

What should investors know about cleantech in Australia before they jump in? Read on for a look at key factors, including market size, the industries encompassed by cleantech and big players to watch.

Keep reading... Show less

Galaxy Resources Limited Announcement

Galaxy Resources Limited (ASX: GXY) ( Company ) advises that the following announcement has been made to the Australian Securities Exchange which appears on the Company’s platform (ASX):

  • Becoming a substantial holder

The announcement can be viewed at:

Keep reading... Show less

Top News

Related News