Resolute Mining complete phase two of share placing plan

Resolute Mining (LON:RSG) have announced that they have completed the second part of their share placing plan.

The gold miner said that they have raised AUD23.3 million through a proposed share purchase plan, following an equity raise in 2019.

The first phase of their share placing plan raised AUD196 million, and the update today will please shareholders that the firm now has the program nearly complete.

Resolute have said that they are planning to place a further set of shares to raise a final AUD25 million, which will complete the placing.

The funds are going to be used to pay off a $130 million bridge facility provided by Taurus Funds Management Pty Ltd – which was used to purchase Toro Gold Ltd.

Managing Director and CEO, Mr John Welborn, thanked the Company’s shareholders for their continued support:

“The positive response to the SPP from shareholders is greatly appreciated. Proceeds from the SPP 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.”

Resolute Mining see positive few weeks

Last week, Resolute Mining noted that they had seen higher gold reserves at the end of 2019.

The gold miner reported a year-end rise in gold reserves, as the planned sale of its Ravenswood mine goes ahead.

Resolute told the market that total ore and mineral reserves climbed 15% year on year, rising from 16.6 million ounces of gold to 19.1 million ounces at the end of 2019.

The last few weeks have been positive for Resolute, and the firm should be confident following the reaction from shareholders of the share placing program.

These funds will now be used to fill any outstanding bridge facilities, and the sale of the Ravenswood Mine should be progressing.

Shares in Resolute Mining trade at 58p (-6.45%). 26/2/20 12:49BST.

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