Resolute Mining Limited (ASX:RSG) (LON:RSG) has issued 14,983,476 shares as part of the second tranche of its January 2020 equity raising and 23,000,000 shares to fund the US$12 million acquisition of the royalty over the Mako Gold Mine in Senegal from Taurus Funds Management Pty Limited.
Resolute had launched a ~$195 million equity raising in January 2020.
The equity raising comprised a two-tranche placement and a share purchase plan (SPP) both of which received strong support from new and existing shareholders.
The Tranche 1 institutional placement shares and the SPP shares were issued on January 30 2020 and March 3 2020 respectively.
The Tranche 2 placement shares were approved by the company’s shareholders at an Extraordinary General Meeting (EGM) held in February 2020.
Strong support from directors
The EGM approved the issue of a total of 22,727,273 Tranche 2 shares at a price of $1.10 per share which included allocation of shares to ICM Limited and the approval of issue of shares to Resolute’s managing director and CEO John Welborn, non-executive chairman Martin Botha and non-executive directors Yasmin Broughton and Sabina Shugg.
The issue of 14,983,476 Tranche 2 placement shares at a price of $1.10 includes 14,583,475 shares allotted to ICM and 400,001 shares allotted to Resolute directors.
A further 7,743,797 shares will be issued to ICM at a price of $1.10 at the end of April 2020 to complete the Tranche 2 placement and finalise the ~A$195 million equity raising.
Mako Gold Mine royalty acquired
Resolute has completed the acquisition of the Mako Royalty through the issue 23,000,000 shares at a price of $0.845 per share.
The royalty had an agreed termination value of US$12 million with consideration to be paid in cash or in Resolute shares.