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RSG - Resolute Mining News Story

31.1p 2.1  7.2%

Last Trade - 3:02pm

Sector
Basic Materials
Size
Small Cap
Market Cap £330.9m
Enterprise Value £485.4m
Revenue £434.3m
Position in Universe 694th / 1819

BUZZ-Resolute Mining sees best day in over a year as Ghana mine lease restored

Wed 14th April, 2021 3:28am
** Shares of gold miner Resolute Mining  RSG.AX  rise as
much as 15.4% to A$0.54, set for their best day since March 2020
    ** Company says mining lease for its Bibiani gold mine in
Ghana has been restored after being terminated last month
 urn:newsml:reuters.com:*:nAZN012L1R
    ** As per terms of lease restoration, Ghana's government
says it does not recognise the sale of Bibiani to China's
Chifeng Jilong Gold Mining  600988.SS 
    ** Resolute had agreed to sell the mine to Chifeng Jilong
for $105 mln in December last year  urn:newsml:reuters.com:*:nL1N2IV0IR
    ** Brokerage RBC ("sector perform", A$0.80 PT) says the
lease restoration will be viewed as positive, and believes
investors will again attribute value to the mine
    ** "Although we believe a sale of the asset to be the
preferred choice, if RSG were to develop the project solely,
timing of cash flow outflow (or financing alternatives) would be
key" - RBC
    ** As of 0213 GMT, about 20.8 mln Resolute Mining shares
change hands vs 30-day moving avg of 9.3 mln shares
    ** Up to Tuesday's close, stock down 40.9% this year

 (Reporting by Shashwat Awasthi in Bengaluru)
 ((Shashwat.Awasthi@thomsonreuters.com))
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