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Resolute Mining Limited — Capital/Financing Update 2008
Oct 27, 2008
10548_rns_2008-10-27_a1936cfb-7286-43f1-8357-abe1938a0aaa.pdf
Capital/Financing Update
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ASX ANNOUNCEMENT
MARKET UPDATE: CAPITAL RAISING
Resolute Mining Limited (ASX: RSG) is pleased to provide an update on the progress of its proposed capital raising.
As reported to the market last week, Resolute is currently pursuing an alternative to the proposed raising originally announced on 9 October 2008. This will involve a restructure and a re-pricing of the issue.
Good progress has been made in relation to the restructured capital raising, with strong support from a number of the Company’s largest shareholders. However, the associated process issues will take some time to finalise.
Resolute has resolved to keep the current voluntary suspension from trading in place while it seeks to successfully manage the capital raising process.
Global market conditions are clearly very difficult and Resolute believes that it is also in the best interests of shareholders to seek to complete the capital raising before returning to trading.
Resolute also remains committed to offering participation in the raising to existing shareholders.
The proceeds of the fund raising will be used to complete the re-development and ramp up of Syama and maintain the Company’s other development activities.
The funding required for this important work is estimated at $50-$60m and arises primarily from the increase in capital estimates to complete the construction coupled with a working capital demand from operations due to the slower ramp-up of production at the project.
Resolute will keep shareholders informed of developments on the capital raising and Syama as they occur.
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PETER SULLIVAN Chief Executive Officer 28 October 2008
RESOLUTE MINING LIMITED A.C.N. 097 088 689 A.B.N. 39 097 088 689 4[th] Floor, The BGC Centre, 28 The Esplanade, Perth, Western Australia 6000. PO Box 7232 Cloisters Square, Perth, Western Australia 6850. Telephone +61 8 9261 6100 Facsimile +61 8 9322 7541 Email : [email protected]