PERTH (miningweekly.com) – Gold miner Resolute Resources on Friday announced that it would raise up to A$25-million through a convertible note offer to fund drilling programmes and feasibility work at its projects.
The offer would comprise the issue of 15-million convertible unsecured notes with a face value of $1 each, and would raise an initial A$15-million before costs, with Resolute retaining the ability to accept oversubscriptions of up to A$10-million.
CEO Peter Sullivan told shareholders that the offer provided Resolute with flexibility in its current project development opportunities, and was also a prudent capital management initiative in light of the prevailing market conditions affecting the gold sector.
The funds would be used to undertake drilling programmes and feasibility works at Bibiani, in Ghana, Syama, in Mali, and Buck Reef West, in Australia, while also advancing works on the connection of the Syama project to the main power grid, and maintain ongoing operations on current projects and for general working purposes.
The company’s shareholders would be given priority to participate in the convertible note offer, while the general public would also be able to participate.
During the three months to September, Resolute produced 67 078 oz of gold, with the Syama operation impacted by heavy rains. For the full 2015, Resolute expects to produce about 315 000 oz of gold.