Resolute Mining (ASX:RSG) has sold its Ravenswood Gold Mine in Queensland to a consortium comprising EMR Capital and Golden Energy & Resources for up to $300 million.
The deal is made up of a $100 million upfront payment with up to $200 million in potential payments contingent on future gold prices, future gold production, and the investment outcomes from the Ravenswood Gold Mine for EMR capital.
Resolute says the divestment provides strategic clarity and is consistent with its ambition of being a low-cost multimine African-focused gold producer.
The transaction has been structured to maximise Resolute’s exposure to the future success of the project while transferring the capital expenditure funding requirements and development obligation to a highly credentialed and experienced consortium with a strong relevant track record in successful project development.
Shares in Resolute Mining (ASX:RSG) are trading 0.4 per cent higher at $1.18.