Resolute Mining Ltd. has successfully completed the sale of the Ravenswood gold mine in Queensland to a consortium comprising a fund (EMR Fund) managed by specialist resources private equity manager EMR Capital Management Ltd. (EMR Capital), and Singapore-listed mining and energy company, Golden Energy and Resources Ltd. The sale of Ravenswood has been completed in accordance with the transaction terms and timeline outlined in the definitive agreements signed in January.

Resolute has received A$100 million of upfront proceeds consisting of A$50 million in cash and A$50 million in promissory notes that earn a 6% coupon. Resolute retains additional upside exposure to Ravenswood through two further notes valued at up to A$200 million, which may result in payments to Resolute of up to A$50 million linked to the average gold price over a four-year period; and up to A$150 million linked to the investment outcomes of Ravenswood for the EMR Fund.

“The sale of our Ravenswood gold mine delivers on our objective of ensuring a new long-life future for Ravenswood while maximizing value for Resolute shareholders,” Resolute Managing Director and CEO John Welborn said. “Settlement enables us to focus our attention and energy on our African portfolio and the abundant opportunities for further growth and value creation.”

Ravenswood was a strong performer for Resolute for more than 15 years and mined and processed more than 40 million metric tons (mt) of ore and produced almost 2 million ounces (oz) of gold.