PERTH (miningweekly.com) – Gold miner Resolute Mining has completed the sale of its Ravenswood gold mine, in Queensland, to a consortium consisting of private equity manager EMR Capital and energy and mining company Golden Energy and Resources (GEAR).

Resolute in January this year struck an agreement with the consortium, under which they would pay A$300-million for the project, consisting of A$100-million of upfront value and up to A$200-million in potential payments, which will be contingent on future gold prices, future production from Ravenswood, and the investment outcomes from the Ravenswood project for EMR Capital.

Up to A$50-million of the consideration will be linked to the average gold price over a four-year period, and up to A$150-million will be linked to the investment outcomes for EMR.

Resolute MD and CEO John Welborn on Tuesday said that the sale of the Ravenswood gold mine delivered on the company’s objective of ensuring a new long-life future for the mine while maximizing value for Resolute shareholders.

“Settlement enables us to focus our attention and energy on our African portfolio and the abundant opportunities for further growth and value creation.

“Ravenswood has been a strong performer for Resolute for more than 15 years. During this time Resolute has mined and processed over 40-million tonnes of ore and produced over two-million ounces of gold.

“We are proud of our achievements in Queensland and the significant economic benefits we have provided to the local community, the government and Resolute shareholders. We are confident Resolute’s legacy, and the interest of all stakeholders in Ravenswood, will be protected and enhanced by the new owners.”

With the sale of Ravenswood now completed, Resolute has upgraded its production guidance for 2020 to 430 000 oz, at all-in sustaining costs of $980/oz.