(Alliance News) - Resolute Mining Ltd has raised a further AUD23.3 million through a share purchase plan, following an equity raise earlier in 2019.
In January, Resolute proposed raising AUD196 million, or GBP103.0 million, in three parts. The first tranche raised AUD146 million, and the now-completed share purchase plan, the second tranche, has raised the AUD23.3 million.
The company is still planning on placing a further set of shares to raise AUD25 million to complete the placing.
Managing Director & Chief Executive John Welborn said: "The positive response to the share purchase plan from shareholders is greatly appreciated. Proceeds from the share purchase plan form an important part of the total equity raising proceeds which are being used to repay debt and strengthen the company's balance sheet.
"Resolute is now well positioned to focus on operational performance and delivery of our strategic objectives."
The debt being paid off is a USD130 million bridge facility provided by Taurus Funds Management Pty Ltd. This funding was used to purchase Toro Gold Ltd, which held the Mako gold mine in Senegal.
As well as Mako, Resolute owns the Syama mine in Mali and Ravenswood in Queensland, though it has accepted a bid of up to AUD300 million for Ravenswood from a private equity group, EMR Capital Management Ltd.
Resolute shares were 6.5% lower on Wednesday morning in London at a price of 57.96 pence each.
By George Collard; georgecollard@alliancenews.com
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Resolute Mining (RSG)