Resolute sharpens African focus with $300 million sale of Queensland gold mine

Resolute Mining has signed a definitive agreement to sell the Ravenswood Gold Mine in Queensland for AUS$206.9 million, as the gold miner doubles down on its African portfolio.

The Ravenswood mine will be acquired by a consortium comprised of a fund (EMR Fund) managed by EMR Capital Management and Golden Energy and Resources, with Resolute receiving an upfront payment of around $100 million in a combination of cash and promissory notes.

ASX and LSE-listed Resolute can also earn up to $50 million based on the average gold price over a four-year period and an additional $150 million based on the investment outcomes from Ravenswood for the EMR Fund.

The proceeds received from the transaction will be used to reduce company debt and strengthen its balance sheet.

Resolute’s managing director and CEO John Welborn said: “The divestment has strong strategic merit for Resolute.

“We have delivered on our objective of ensuring a new long-life future for Ravenswood under a world-class operator and can now focus our attention and energy on our African portfolio and the abundant opportunities our experience provides for further growth and value creation.”

Resolute operates the fully autonomous Syama underground mine in Mali and expanded into Senegal last year with the acquisition of Toro Gold. The company also owns the Bibiani Gold Mine in Ghana.