Resolute Mining determined to grow as adds London listing

Loncor Gold

20/06/2019 07:32

* Says London a magnet for African mining investors
    * Listing takes up some of the space left by Randgold

    By Barbara Lewis
    LONDON, June 20 (Reuters) - Australian-listed gold miner
Resolute Mining  RSG.AX  lists on the London Stock Exchange on
Thursday to broaden its investor base and pursue its ambition to
be a high-tech, pan-African gold producer, partly through
acquisitions.
    New listings have been scant in London, where uncertainty
over Britain's departure from the European Union has impacted
decision-making. The junior mining sector, hit by concerns about
sustainability and political risk, has found it particularly
hard to raise money.  urn:newsml:reuters.com:*:nL8N21E65O  urn:newsml:reuters.com:*:nL5N208701  urn:newsml:reuters.com:*:nL8N23C4XE
    The Resolute listing fills some of the gap left by Randgold,
which dropped out of the London market following its merger,
completed at the start of this year, to form Barrick Gold
 ABX.TO .
    That merger provides the kind of critical mass that attracts
the passive, index-based institutional investors dominant on the
London market, analysts said.  urn:newsml:reuters.com:*:nL5N2001BR
    Resolute Mining's market capital based on its Australian
listing is around $562 million, Refinitiv data shows, but CEO
John Welborn has ambitions to grow.
    "We are looking for the right project to construct or
operate," he said. "We are looking at inorganic opportunities."
    The company has stakes ranging from 11% to 27% in six gold
exploration companies: Orca Gold  ORG.V , Oklo Resources
 OKU.AX , Mako Gold  MKG.AX , Manas Resources  MSR.AX , Loncor
Resources  LN.TO  and KiloGold  KGL.V . 
    These span countries including Sudan and Democratic Republic
of Congo.
    Welborn said in principle he did not favour dual-listings,
but for an African-focused company, London was the obvious
market. 
    "The reality is London has been the centre of investment in
the African continent. I don't think it's going to be affected
by short-term factors," he said.
    He said Resolute is set apart by its use of technology as it
ramps up its Syama mine in Mali, which is the world's first
purpose-built, fully-automated underground gold mine and has
capacity to produce 300,000 ounces of gold annually. 
    The company also owns the Ravenswood Gold Mine in Australia
and the Bibiani Gold Mine in Ghana. 
    Resolute's Australian listing is unchanged and the company
has not raised any additional funds or issued any new shares.   
($1 = 1.4558 Australian dollars)  

 (Reporting by Barbara Lewis;
Editing by Alexander Smith)
 ((Barbara.hm.Lewis@thomsonreuters.com; +44 207 542 2932;
Reuters Messaging:
barbara.hm.lewis.thomsonreuters.com@reuters.net))