Resolute flags Ravenswood gold mine sale

The Ravenswood project. Image: Resolute Mining.

Resolute Mining is in advanced negotiations with EMR Capital Management over the potential sale of the Ravenswood gold mine in Queensland.

The company is considering the sale of Ravenswood for total proceeds of up to $300 million, comprising $100 million of initial upfront value and up to $200 million in deferred consideration.

This payment would be contingent on future gold price outcomes, future production thresholds from the Ravenswood expansion project and the investment outcomes from Ravenswood for EMR Capital.

Resolute announced last month that it was evaluating the future capital demands of Ravenswood expansion and how to best maximise shareholder value from the project.

The gold miner, which is known for its African assets, refurbished the mine last year by upgrading its mineral resources, ore reserves and processing capacity.

Resolute has also received the Queensland Government’s environmental permit to grow Ravenswood into a 200,000 ounces gold producer over a 10-year mine life on the back of an expanded tailing storage facility at the site.

Resolute and EMR Capital could come into an exclusivity deed on January 15, should the parties go ahead with the proposed transaction.

“While negotiations and documentation are advanced, there is currently no certainty that an agreement for the sale of Ravenswood will be reached between Resolute and EMR Capital,” Resolute stated.

“The company will update the market as appropriate.”

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