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Resolute Mining Limited — Capital/Financing Update 2024
Sep 3, 2024
10548_rns_2024-09-03_06cd67ac-651f-4af5-91c2-0b98737c9739.pdf
Capital/Financing Update
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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:
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a USD 30 million Revolving Credit Facility (RCF);
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a USD 30 million Term Loan Facility with a one-year drawdown period;
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USD 80 million Accordion Facility;
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A credit margin of 5.25%; and
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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
Level 17, 2 The Esplanade, Perth, Western Australia 6000 T +61 8 9261 6100 E [email protected]
Resolute Mining Limited ABN 39 097 088 689
ASX/LSE:RSG I rml.com.au
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Resolute
Matthias O’Toole Howes, Corporate Development and Investor Relations Manager [email protected] +44 203 3017 620
Public Relations
Jos Simson, Tavistock [email protected] +44 207 920 3150
Corporate Brokers Jennifer Lee, Berenberg +44 20 3753 3040
Tom Rider, BMO Capital Markets +44 20 7236 1010
ASX/LSE:RSG I rml.com.au
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