Resolute Mining on verge of acquisition proposal

Resolute Mining's flagship project Syama in Mali, West Africa. Image: Resolute Mining

Resolute Mining has entered into a trading halt on the ASX ahead of an announcement relating to a proposed acquisition.

The company requested the halt to last until normal trading starts on August 2 or when it announced details of the acquisition.

Resolute’s halt comes as the company enters the 2020 financial year aiming to ramp up production at the Syama underground mine in Mali, West Africa.

The company’s 12-month gold production of 305,436 ounces at an all-in sustaining cost of $US924 ($1345) bettered its guidance of 300,000 ounces at $US960 per ounce.

At Syama, Resolute increased its quarterly production over the March period by 69 per cent with 22,532 ounces.

Resolute chief executive officer John Welborn said exceeding production guidance and outperforming cost guidance was an exceptional result during a period of significant development.

“We have generated strong positive operational cashflows while investing in growth,” Welborn said.

“With the achievement of commercial production rates at the new Syama Underground Mine we have now turned the corner and expect to see increased production at lower costs in line with our development expectations.”

The company is now focused on continuing the successful production ramp up at the site and automating all aspects of the sublevel cave during 2019.

“Syama will be a powerhouse of gold production for Resolute for many years to come and generate significant returns for Resolute shareholders, local communities, suppliers and the Mali Government,” Wellborn said.

Resolute also reported a major gold inventory upgrade at Ravenswood with one million ounces being added to ore reserves.

This coincides with the Ravenswood expansion study which demonstrates a potential to deliver 200,000 ounces annually for 15 years.

“At Ravenswood, I am particularly pleased with our major upgrade of mineral resources and ore reserves. The addition of one million ounces of gold in ore reserves is an excellent outcome from our recent drilling programs and study work,” Welborn said.

“Gold mineral resources at Ravenswood are now almost six million ounces demonstrating the projects status as an outstanding Australian gold mine.”

At a corporate level, Welborn was also happy to deliver its strategic goal of listing on the London Stock Exchange.

“The dual-listing in London will raise Resolute’s profile in global capital markets and facilitate improved access to gold and African-focused institutional investors,” he concluded.

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