Resolute raises $150m for Ravenswood

Gold miner Resolute Mining has tapped investors for $150 million to fund the restart of operations at its Ravenswood mine in Queensland.

Resolute raised the funds through the placement of 76.5 million shares at $1.96 each, representing an 11.1 per cent discount to the company’s five day volume-weighted average price.

Managing director John Welborn said the raising provided Resolute with the strength and flexibility to achieve its project development ambitions.

“During the 2016 financial year Resolute applied extraordinary discipline to reduce debt, generate cash, and progress three major feasibility studies which have revitalised our assets, our people, and our company,” Mr Welborn said.

“A priority has been Resolute’s flagship project, the Syama gold mine in Mali. Construction of the Syama underground project commenced in July 2016 and is expected to deliver a highly profitable mine with a mine life beyond 2028, total site production of up to 250,000 ounces of gold per year, and all-in sustaining costs of $US881/oz.

“Resolute has committed to fully fund the $US95 million capital demands of the Syama underground project over the next 18 months from existing cash reserves and ongoing operational cashflows.”

Mr Welborn also said the funds raised would allow Resolute to fully fund its $134 million Ravenswood extension project, while also retaining financial strength to advance other growth opportunities as they arise.

“While we have identified a viable pathway to production at Bibiani, our ambition for the asset is to deliver a 10 year-plus mine life at globally competitive all-in sustaining costs,” he said.

“To achieve this, further exploration drilling is required with the aim of expanding our reserve base and building a bigger project.

“The placement provides an additional $15 million to advance our exploration agenda at Bibiani.”

UBS brokered the raising.

Last week, Resolute released a feasibility study on the recommencement of mining at Ravenswood, with the mine life of the operation set to be extended to 2029.

Resolute shares were unchanged at $2.19 each at 10am.