REG - Resolute Mining Ltd - Resolute Loan Facility

Resolute MiningAnnouncement

04/09/2024 07:00

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RNS Number : 7924C  Resolute Mining Limited  04 September 2024

04 September 2024

Resolute Loan Facility

 

Resolute secures senior debt facilities of up to USD 140 million with Nedbank
and Citibank to strengthen liquidity

 

Resolute Mining Limited ('Resolute' or 'the Company') (ASX/LSE:RSG) is pleased
to announce that it has signed senior debt facilities (the "Facility") of up
to USD 140 million with Nedbank acting through its Nedbank Corporate and
Investment Banking division and Citibank N.A. The facilities provide immediate
access to up to USD 60 million of funding, with the potential to increase this
amount by up to USD 80 million through the Accordion Facility

 

The Facility was arranged by Nedbank, a longstanding financing partner that
has supported Resolute in previous debt financings.  The primary purpose of
the Facility is to provide increased flexibility to continue to explore
organic and inorganic growth opportunities.  The Facility also gives Resolute
the ability to maintain its strong financial position when capitalising on
emerging opportunities.  Resolute's announced growth opportunities including
the Syama Phase 1 expansion and investments in extending the mine life at
Mako, are currently self-funded, therefore it is anticipated that the Facility
will remain undrawn until other growth projects have been identified.

 

The three-year Facilities comprises:

§ a USD 30 million Revolving Credit Facility (RCF);

§ a USD 30 million Term Loan Facility with a one-year drawdown period;

§ USD 80 million Accordion Facility;

§ A credit margin of 5.25%; and

§ No hedging requirements.

 

At the end of June 2024, Resolute's net cash was USD 96.6 million, including
Cash and Bullion of USD 143.3 million.  With the new financing facility
Resolute's liquidity will increase to over USD 200 million strengthening the
balance sheet.  Drawdown of Facility remains subject to customary conditions
precedent for a facility of this nature.

 

Chris Eger, CFO, commented,

"We are delighted to secure this USD 60 million loan facility and appreciate
the confidence Nedbank and Citibank have shown in our business. This financing
demonstrates the Company's ability to access commercial debt financing at
competitive terms from international lenders.

This loan facility provides us the flexibility to drive sustainable organic
growth of the business as well as pursue inorganic growth opportunities."

 

 Note: Unless otherwise stated, all dollar figures are United States dollars
($)

Authorised by Mr Terence Holohan, Managing Director and Chief Executive
Officer

Contact
 Resolute                                               Public Relations

 Matthias O'Toole Howes,                                Jos Simson, Tavistock

 Corporate Development and Investor Relations Manager   resolute@tavistock.co.uk (mailto:resolute@tavistock.co.uk)

 Matthias.otoolehowes@resolutemining.com                +44 207 920 3150
 (mailto:Matthias.otoolehowes@resolutemining.com)

 +44 203 3017 620

                                                      Corporate Brokers

                                                      Jennifer Lee, Berenberg

                                                        +44 20 3753 3040

                                                        Tom Rider, BMO Capital Markets

                                                        +44 20 7236 1010

 

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