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Resolute Mining Limited — Capital/Financing Update 2008
Apr 8, 2008
10548_rns_2008-04-08_da8b5468-9631-4294-9423-f00f017a68be.pdf
Capital/Financing Update
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ASX ANNOUNCEMENT
SYNDICATED DEBT FACILITY ARRANGED BY BARCLAYS CAPITAL
Resolute Mining Ltd is pleased to announce that it has entered into and drawn down on a Debt Facility arranged by Barclays Capital and underwritten by Barclays Bank PLC.
Under the Debt Facility, Resolute Mining will draw down up to US$55 million of debt, which will be applied to its Syama and Mt Wright development projects. In addition, up to $5 million in performance bonds are to be provided to various mining authorities to cover the group’s environmental bonding obligations.
The Debt Facility is a secured revolving corporate loan that is to be repaid in half yearly instalments from December 2008 to December 2012.
The financing arrangements do not require the Company to increase its hedging commitments. Instead the current hedging commitments will be deferred slightly to allow a higher spot price participation in the short term. The new hedging profile will change to approximate that shown in the right hand column of the Table below.
| Period Ending | Hedging Profile asat 31.03.08(Ounces ofGold) | New HedgingProfile(Ounces ofGold) |
|---|---|---|
| 30 June 2008 | 72,667 | 25,000 |
| 30 June2009 | 184,083 | 95,000 |
| 30 June 2010 | 88,334 | 100,000 |
| 30 June2011 | 0 | 100,000 |
| 30 June 2012 | 0 | 25,084 |
| Total | 345,084 | 345,084 |
RESOLUTE MINING LIMITED A.C.N. 097 088 689 A.B.N. 39 097 088 689 4th 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]
The Company also intends to enter into a bought gold put option program to provide further protection in the event of a fall in the gold price.
“It is very pleasing that we have been able to conclude these arrangements in a timely manner, in what has been a difficult credit market, but more importantly it means we have now fully funded our key development projects” said Resolute Mining CEO, Peter Sullivan.
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PETER SULLIVAN Chief Executive Officer
9 April 2008
RESOLUTE MINING LIMITED A.C.N. 097 088 689 A.B.N. 39 097 088 689 4th 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]