(Alliance News) - Resolute Mining Ltd on Monday said it has entered into negotiations with private equity firm EMR Capital Management Ltd to sell its Ravenswood gold mine in Queensland, Australia.
Resolute said negotiations for the deal, which could be worth up to AUD300 million, roughly GBP159.6 million, "are significantly advanced".
As part of the potential deal, EMR could pay AUD100 million upfront, followed by a deferred consideration of AUD200 million, subject to production milestones and future gold prices.
Resolute said: "While negotiations and documentation are advanced, there is currently no certainty that an agreement for the sale of Ravenswood will be reached between Resolute and EMR Capital."
The two firms signed an exclusivity arrangement, which expires on Wednesday.
The announcement from Resolute comes in the wake of an Australian media report which stated the firm was close to selling the Ravenswood asset.
Resolute shares were 6.2% higher 63.00 pence each in London on Monday afternoon.
By Eric Cunha; ericcunha@alliancenews.com
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Resolute Mining (RSG)