Completion of Debt Refinancing

RNS Number : 6836H

Resolute Mining Limited

26 March 2020

 

26 March 2020

Resolute Mining Limited

(Resolute or the Company)

Completion of Debt Refinancing

Resolute Mining Limited (Resolute or the Company) (ASX/LSE: RSG) is pleased to confirm the successful completion of the Company's refinancing following first drawdown under the Company's new US$300 million flexible low-cost syndicated loan facility (Facility). 

On 20 March 2020, Resolute executed documentation for the new Facility which consists of a three-year US$150 million revolving credit facility and a four-year US$150 million term loan facility (see ASX Announcement dated 20 March 2020). 

First drawdown under the Facility, which occurred on 25 March 2020, has been used to refinance the Company's existing senior debt and completely repay the Project Loan over the Mako Gold Mine in Senegal (Mako). Repayment of the Mako Project Loan has resulted in the release of all security held by Taurus Funds Management Pty Limited over Mako. As a result, the full benefit of Mako's positive cash flows are now immediately accessible to Resolute.

Successful completion of the refinancing simplifies Resolute's capital structure, removes restrictive conditions associated with the project loan facility, reduces annual borrowing costs and provides Resolute with additional liquidity.

Establishment of the Facility, and the resulting simplified and restructured senior debt security package, will also enable progression and completion of the sale of the Ravenswood Gold Mine in Queensland which is expected to settle on or around 31 March 2020 (see ASX Announcement dated 15 January 2020).

Following initial drawdown and completion of the Company's refinancing activities, the Facility is expected to be drawn to approximately US$250 million.

For further information, contact:

John Welborn Managing Director & CEO

Jeremy Meynert General Manager - Business Development & Investor Relations

 

About   Resolute

Resolute is a successful, dividend paying gold miner with more than 30 years of experience as an explorer, developer and operator of gold mines in Australia and Africa which have produced more than 8 million ounces of gold. The Company trades on the Australian Securities Exchange (ASX) and the London Stock Exchange (LSE) under the ticker RSG.

Resolute has a Global Mineral Resource base of more than 19 million ounces of gold. The Company's flagship asset is the world class Syama Gold Mine in Mali which has the ability to produce 300,000 ounces of gold per annum from existing processing infrastructure. Resolute has commissioned the world's first automated underground mine at Syama which will deliver a low cost, large scale operation with a mine life beyond 2032. The Mako Gold Mine in Senegal is a high quality, low cost asset with average annual production of approximately 140,000 ounces of gold. A binding agreement has been signed to sell the Ravenswood Gold Mine in Queensland, Australia for up to A$300 million. A strategic review is currently underway of the Bibiani Gold Mine in Ghana.

Resolute's guidance for FY20 has been set at production of 500,000 ounces of gold at an AISC of US$980 per ounce. FY20 Guidance will be revised once the sale of Ravenswood has been finalised. 

Contact Information

Resolute John Welborn, Managing Director & CEO Jeremy Meynert, General Manager - BD & IR Telephone: [phone] Email: [e-mail] Web: www.rml.com.au Berenberg (UK Corporate Broker) Matthew Armitt / Jennifer Wyllie / Detlir Elezi Telephone: [phone] Tavistock (UK Public Relations) Jos Simson / Emily Moss / Annabel de Morgan / Oliver Lamb Telephone: [phone] Email: [e-mail]

 

Authorised by Mr John Welborn, Managing Director & CEO

ASX/LSE: RSG Capital Summary Fully Paid Ordinary Shares: 1,057,099,666 Current Share Price (ASX): A$0.88 as at 25 March 2020 Market Capitalisation: A$930 Million FY20 Guidance: 500,000oz @ AISC US$980/oz

Board of Directors Mr Martin Botha Non-Executive Chairman Mr John Welborn Managing Director & CEO Ms Yasmin Broughton Non-Executive Director Mr Mark Potts Non-Executive Director Ms Sabina Shugg Non-Executive Director Mr Peter Sullivan Non-Executive Director

Contact John Welborn Managing Director & CEO Jeremy Meynert GM - BD & IR Level 2, Australia Place | 15-17 William St Perth, Western Australia 6000 T: [phone] | F: [phone] E: [e-mail]

 

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