Australia's Resolute Mining Ltd. entered into exclusive negotiations with private equity firm EMR Capital Management Ltd. to sell the Ravenswood gold mine in Queensland, Australia, for up to A$300 million.
On Jan. 13, Resolute confirmed an article by The Australian Financial Review's Street Talk that said the company was close to selling the property.
Resolute said the price comprises A$100 million of initial upfront value and up to A$200 million in additional deferred consideration, which would be contingent on future gold prices, future production thresholds, and the investment outcomes from Ravenswood for EMR Capital.
The exclusivity period expires Jan. 15. Resolute said negotiations are in the advanced stage but there is no certainty a deal will be reached.
In 2019, the company launched a strategic review that focused on evaluating the future capital demands of the Ravenswood expansion project. Production from the stage-one expansion, which was completed in December 2019, is targeted at 80,000 ounces per annum of gold. Production from stage two, where construction is expected to start this year, is targeted at 200,000 ounces per annum of gold for 15 years from 2022.