AUSTRALIAN-LISTED gold company Resolute Mining has confirmed media reports that it is in exclusive talks with a potential buyer for its Ravenswood gold mine in Queensland.
Responding to Australian media reports, Resolute Mining said in a statement to the ASX that it had entered into exclusive negotiations with private equity firm EMR Capital Management for the sale of the mine.
Negotiations between Resolute and EMR Capital on the sale are ‘significantly advanced’ and could net the gold miner up to $300m, comprising $100m upfront and a deferred payment of $200m.
The deferred payment of $200m could vary as it is subject to a number of factors, including future gold prices, production rates and investment outcomes for Ravenswood.
The talks between Resolute and EMR Capital remain exclusive until January 15, and the miner said there is no certainty that a sale agreement for Ravenswood will be finalised.
Resolute owns four gold mines in Australia and Africa, and said its production and cost guidance for the 2020 financial year is 500,000oz at US$980oz.
Melbourne-based EMR Capital is chaired by former Rio Tinto managing director Owen Hegarty, and its strategy is to invest in ‘producing assets with upside potential’, according to its website.