The combined capital raising plans to raise a combined $196 million.
As customary in these circumstances, the $25 million second tranche of the placement will require shareholder approval – a meeting has been set for 27 February 2020.
The remaining $25 million aims to be raised by an SPP, which will give eligible shareholders of Resolute an opportunity to bid for up to $30,000 worth of stock at the $1.10 issue price.
Proceeds will be used to fully repay the US$130 million Toro Gold bridge facility.
Placement received strong support
Resolutes managing director and CEO John Welborn said: “We welcome the overwhelming support that has enabled the successful close of our A$146 million placement.
“Resolute received an exceptional level of interest from both new and existing institutional investors across Europe and Australia which saw the book many times oversubscribed.
“The heavily supported equity raise is an important endorsement of the companys strategy and vision to create a leading innovative and responsible mid-tier African gold producer.”
Directors plan to buy shares alongside investors
Notably, Resolute directors intend to participate in the equity raising via tranche two after received shareholder approval at the upcoming general meeting.
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