Completion for $300m Ravenswood gold deal
The EMR GEAR Consortium have flagged a keen interest in ramping up operations and extending the life of the business.
Former owner Resolute Mining says the sale deal gives it immediate liquidity and exposure to the future success of the Ravenswood Expansion Project, while transferring the capital expenditure funding requirements and development obligation to consortium with a strong relevant track record in successful project development.
“The sale of our Ravenswood gold mine delivers on our objective of ensuring a new long-life future for Ravenswood while maximising value for Resolute shareholders,” Resolute managing director and chief executive officer 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.”
The EMR GEAR Consortium agreed to pay $100 million upfront for Ravenswood – comprising $50 million of cash and $50 million of deferred consideration via the issue of a promissory note.
The acquisition deal also includes up to $200 million in contingent upside instruments linked to the average gold price and the investment outcomes of Ravenswood for the EMR GEAR Consortium.
EMR also owns the Capricorn Copper mine near Mount Isa and, with partners Adaro and Mitsui, the Kestrel coking coal mine near Emerald in the Bowen Basin.
GEAR has strategic investments in leading gold and coking coal producers in Australia via Westgold Resources and Stanmore Coal.
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