Resolute in $25m raising

Gold miner Resolute Mining has announced plans raise $25 million through a convertible note issue to fund projects in West Africa and near Peel.

The company’s Bibiani gold project in Ghana, recently purchased from Noble Resources, will be a beneficiary, with drilling programs and feasibility studies expected to be funded by the raising.

The mine has historic production of more than 4 million ounces of gold, and is 10 per cent owned by the Ghanian government.

Funding will also be used for drilling and feasibility work at its Syama mine in Mali, and Buck Reef West near Ravenswood.

The company owns an 80 per cent share in the Syama project, where it will also undertake works to connect the mine to the main power grid.

Funding will also be used for general working capital purposes.

In August, Resolute announced a 60 per cent drop in full-year profit to $33 million, amid a tough gold market.

It said revenue from gold sales had fallen, while cash costs were up more than $100/oz.

Convertible notes are debt instruments where the holder has the option to convert the principal equity at maturity, at a pre-arranged rate.

Resolute was down 13.5 per cent to 22.5 cents per share.