Australia’s Resolute Mining (ASX:RSG)
confirmed on Monday that is in advanced talks with private equity fund EMR
Capital Management Ltd over the sale of Ravenswood gold mine, located in Queensland,
The transaction would see EMR paying A$100 million upfront and up to A$200 million in additional deferred consideration, subject to production milestones and future gold prices.
The two firms signed an exclusivity
arrangement, which expires on Wednesday.
EMR is also said to be preparing the sale of a few copper and gold assets, which may include Capricorn Copper mine in Queensland and the Golden Grove mine in Western Australia.
The gold miner, which set overall output target for 2020 at 500,000 ounces, said in a production update that completion of stage 1 of the Ravenswood Expansion Project, or REP, had increased processing capacity to 5 million mt/year. The upgrade, it noted, allows a production target for 2020 of 80,000 ounces of gold at an all-in sustaining costs (AISC) of $1,200 per ounce.
Stage two of the expansion would
see the Perth-based miner’s target production of 200,000 ounces a year for 15
years from 2022.
Ravenswood, located about 95km
southwest of Townsville, is made up of multiple open pits to support large
scale, long-term gold production beyond the life of the existing Mt. Wright
Written by Cecilia Jamasmie.
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