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Resolute Mining
Resolute Mining Ltd - Resolute Loan Facility
4th September 2024, 06:00
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RNS Number : 7924C
Resolute Mining Limited
04 September 2024
 

04 September 2024

Resolute Loan Facility

 

Resolute secures senior debt facilities of up to USD 140 million with Nedbank and Citibank to strengthen liquidity

 


Resolute Mining Limited ('Resolute' or 'the Company') (ASX/LSE:RSG) is pleased to announce that it has signed senior debt facilities (the "Facility") of up to USD 140 million with Nedbank acting through its Nedbank Corporate and Investment Banking division and Citibank N.A. The facilities provide immediate access to up to USD 60 million of funding, with the potential to increase this amount by up to USD 80 million through the Accordion Facility

 

The Facility was arranged by Nedbank, a longstanding financing partner that has supported Resolute in previous debt financings.  The primary purpose of the Facility is to provide increased flexibility to continue to explore organic and inorganic growth opportunities.  The Facility also gives Resolute the ability to maintain its strong financial position when capitalising on emerging opportunities.  Resolute's announced growth opportunities including the Syama Phase 1 expansion and investments in extending the mine life at Mako, are currently self-funded, therefore it is anticipated that the Facility will remain undrawn until other growth projects have been identified.

 

The three-year Facilities comprises:

§ a USD 30 million Revolving Credit Facility (RCF);

§ a USD 30 million Term Loan Facility with a one-year drawdown period;

§ USD 80 million Accordion Facility;

§ A credit margin of 5.25%; and

§ No hedging requirements.

 

At the end of June 2024, Resolute's net cash was USD 96.6 million, including Cash and Bullion of USD 143.3 million.  With the new financing facility Resolute's liquidity will increase to over USD 200 million strengthening the balance sheet.  Drawdown of Facility remains subject to customary conditions precedent for a facility of this nature.

 

Chris Eger, CFO, commented,

"We are delighted to secure this USD 60 million loan facility and appreciate the confidence Nedbank and Citibank have shown in our business. This financing demonstrates the Company's ability to access commercial debt financing at competitive terms from international lenders.

This loan facility provides us the flexibility to drive sustainable organic growth of the business as well as pursue inorganic growth opportunities."

 

 Note: Unless otherwise stated, all dollar figures are United States dollars ($)


 Authorised by Mr Terence Holohan, Managing Director and Chief Executive Officer

Contact

Resolute

Matthias O'Toole Howes,

Corporate Development and Investor Relations Manager

Matthias.otoolehowes@resolutemining.com

+44 203 3017 620

 

 

Public Relations

Jos Simson, Tavistock

resolute@tavistock.co.uk

+44 207 920 3150

 

Corporate Brokers

Jennifer Lee, Berenberg

+44 20 3753 3040

 

Tom Rider, BMO Capital Markets

+44 20 7236 1010

 

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