– Update Jan 15 – Sale confirmed, new owners committed to Ravenswood Expansion Project
In an announcement to the ASX today, the gold producer said it had entered into exclusive negotiations with the Melbourne private equity firm on a potential transaction for the North Queensland asset.
The potential sale to EMR Capital and its partners would involve an upfront payment of $100 million and up to $200 million in additional deferred considerations.
Payment of this would be contingent on future gold prices, future production thresholds and investment outcomes.
“While negotiations and documentation are advanced, there is currently no certainty that an agreement for the sale of Ravenswood will be reached between Resolute and EMR Capital,” Resolute Mining stated.
Resolute is engaged in a strategic review of the Ravenswood operation and its investment in the next stage of its Ravenswood Expansion Project (REP).
It announced last month that it had completed Stage 1 of the REP after a five-month program to refurbish the third ball mill at the site’s Nolans processing plant.
This has increased processing capacity at Ravenswood to 5Mtpa, paving the way for a production target of 80,000oz of gold at an AISC of $US1200/oz this financial year.