REG - Resolute Mining Ltd - Successful Debt Refinancing

Resolute MiningAnnouncement

20/03/2020 08:12

RNS Number : 9700G
  
Resolute Mining Limited
  
20 March 2020
  
 

20 March 2020           
Resolute Mining Limited
(Resolute or the Company)
 
Resolute Debt Refinancing   

New US$300m flexible low-cost senior debt facility

 

Resolute Mining Limited (Resolute or the Company) (ASX/LSE: RSG) is pleased to advise the Company has executed documentation for a new flexible low-cost syndicated loan facility with a maximum limit of US$300 million (Facility). The Facility will refinance the US$63 million secured project loan facility provided by Taurus Funds Management Limited (Taurus) for the initial construction of the Mako Gold Mine in Senegal (Mako) as well as replace US$195 million of existing senior bank debt facilities. 
The new US$300 million Facility comprises a three-year US$150 million revolving credit facility and a four-year US$150 million term loan facility. The Company is pleased to have retained the support of its existing senior bank financiers, BNP Paribas, Citibank, Investec and Nedbank, and to have secured support from new syndicate participants, ING Group and Société Générale.
The Facility provides the Company with flexible low-cost debt under terms which are highly competitive for a senior debt facility of this type. Interest payable on the drawn balance of the Facility is LIBOR plus a margin of 4.00%. 
The Facility simplifies Resolute's capital structure, removes restrictive conditions associated with the project loan facility and will reduce annual borrowing costs. Drawdown under the Facility is expected to occur during the week commencing 23 March 2020. The Facility is expected to be drawn to approximately US$250 million to enable the complete repayment of the Mako project loan facility. The refinancing of the Mako project loan follows Resolute's agreement to acquire the related project royalty over Mako in January 2020 (see ASX Announcement dated 28 January 2020) and the complete repayment of the US$130 million acquisition bridge facility in February 2020 (see ASX Announcement dated 3 February 2020). Mako will form part of Resolute's overall security package for the syndicated loan facility and will have no external royalty or independent encumbrance. As such, the full benefit of Mako's positive cashflows will now be available to Resolute.  
Managing Director and CEO, Mr John Welborn, welcomed the endorsement received from six of the world's leading mining finance banks and was pleased to have secured flexible, low-cost funding in the currently challenging times. 
"I thank our world class banking syndicate for their appreciation of the fundamental strength of our business. We now have a simple low-cost flexible senior debt package which reduces our borrowing costs, provides immediate liquidity, and will provide important flexibility for the funding of future growth initiatives. We expect the undrawn capacity of the Facility to increase during 2020 as we generate positive cashflows from Syama and Mako and pay down debt. We look forward to working with our banking group to create further value for our shareholders."
Authorised by:                                                                      For further information, contact:



John Welborn 
Managing Director & CEO


Jeremy Meynert
General Manager - Business Development & Investor Relations 



About Resolute
Resolute is a successful, dividend paying gold miner with more than 30 years of experience as an explorer, developer and operator of gold mines in Australia and Africa which have produced more than 8 million ounces of gold. The Company trades on the Australian Securities Exchange (ASX) and the London Stock Exchange (LSE) under the ticker RSG.
Resolute has a Global Mineral Resource base of more than 19 million ounces of gold. The Company's flagship asset is the world class Syama Gold Mine in Mali which has the ability to produce 300,000 ounces of gold per annum from existing processing infrastructure. Resolute has commissioned the world's first automated underground mine at Syama which will deliver a low cost, large scale operation with a mine life beyond 2032. The Mako Gold Mine in Senegal is a high quality, low cost asset with average annual production of approximately 140,000 ounces of gold. A binding agreement has been signed to sell the Ravenswood Gold Mine in Queensland, Australia for up to A$300 million. A strategic review is currently underway of the Bibiani Gold Mine in Ghana.
Resolute's guidance for FY20 has been set at production of 500,000 ounces of gold at an AISC of US$980 per ounce. FY20 Guidance will be revised once the sale of Ravenswood has been finalised.  
Contact Information






Resolute
John Welborn, Managing Director & CEO
Jeremy Meynert, General Manager - BD & IR
Telephone: +61 8 9261 6100
Email: contact@rml.com.au
Web: www.rml.com.au


Berenberg (UK Corporate Broker)
Matthew Armitt / Jennifer Wyllie / Detlir Elezi
Telephone: +44 20 3207 7800
 
Tavistock (UK Public Relations)
Jos Simson / Emily Moss / Annabel de Morgan / Oliver Lamb
Telephone: +44 207 920 3150 / +44 778 855 4035 
Email: resolute@tavistock.co.uk













 
Authorised by Mr John Welborn, Managing Director & CEO 
 



ASX/LSE: RSG Capital Summary
Fully Paid Ordinary Shares: 1,057,099,666
Current Share Price (ASX):

A$0.72 as at 19 March 2020
Market Capitalisation: A$761 Million
FY20 Guidance: 
500,000oz @ AISC US$980/oz  


Board of Directors
Mr Martin Botha Non-Executive Chairman

Mr John Welborn Managing Director & CEO 
Ms Yasmin Broughton Non-Executive Director 
Mr Mark Potts Non-Executive Director
Ms Sabina Shugg Non-Executive Director
Mr Peter Sullivan Non-Executive Director


Contact
John Welborn Managing Director & CEO
Jeremy Meynert GM - BD & IR

Level 2, Australia Place | 15-17 William St

Perth, Western Australia 6000

T: +61 8 9261 6100 | F: +61 8 9322 7597

E: contact@rml.com.au



 


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