Resolute Mining
ASX-listed gold producer Resolute Mining has successfully completed the placement of 76.5 million shares in an equity raise to fund its future production growth.

Resolute Mining announced on Wednesday that has successfully completed a A$150 million institutional placement to advance the development of the Ravenswood extension project in Queensland, Australia and for drilling and evaluation activity at the Bibiani gold mine in Ghana.

Following the placement, the Ravenswood extension project, the Sayama Underground development (Mali) and a new exploration and development programme for Bibiani (Ghana) can be fully funded from Resolute’s cash balances and ongoing operational cash flows.

Resolute Mining noted that the placement was strongly supported and has introduced a range of quality domestic institutional investors to Resolute’s register, reflecting the confidence in the company’s quality assets and growth opportunities.

Under the terms of the placement, investors have subscribed for 76.5 million new shares in the company at a price of A$1.96 per share, which will rank, equally with existing Resolute shares and represent approximately 10.4% of the company’s undiluted share capital immediately following completion of the placement.

Moreover, the new shares will be issued under the company’s 15% placement capacity.

The Placement Price of $1.96 per share represents:

  • a discount of 10.5% to Resolute’s closing price of $2.19 on 26 September 2016,
  • a discount of 4.3% to Resolute’s 30-day trading VWAP of $2.05.

Settlement is scheduled to occur on Friday, 30 September 2016 and the new shares are expected to be issued and commence trading on the ASX on Monday 3 October 2016.

The company recently announced that the trading halt over the company’s shares is expected to be lifted at market open on 26 September.

Resolute’s MD and CEO John Welborn, was pleased with the level of support received, particularly from new domestic institutional shareholders.

“Resolute’s ambition is to reward our shareholders by generating exceptional returns from long life, high margin, efficient gold mines in Australia and Africa. Successful completion of the institutional placement has expanded our register and provided an opportunity for new shareholders to join the company at a very exciting period of our history,” says Welbourn.

He adds: “We now have the balance sheet strength to pursue our development plans. Importantly, we retain the financial flexibility to advance new growth opportunities.”

Resolute believes that it provides unique exposure to quality gold assets with decade-plus mine lives based on existing production from established mines in geologically-proven settings.

UBS AG, Australia Branch acted as sole lead manager and underwriter, King and Wood Mallesons and Baker & McKenzie acted as the company’s legal advisors and Somers and Partners acted as the company’s financial advisor.