An Australasian investment partnership has become the new owner of a $167 million precious metal operation in North Queensland.
EMR Capital and Singapore-based Golden Energy and Resources recently bought Resolute Mining’s Ravenswood Gold Mine, 95km southwest of Townsville.
The transaction involves an upfront payment of $100M plus a further $200M in potential payments depending on gold spot prices and gold production volumes from the operation, making the deal worth a total of up to $300M.
No job losses
Resolute plans to use the money to help pay off debts and further strengthen the company’s balance sheet. The company promises none of the 200 full-time mine workers or existing contractors will lose their job in the immediate future.
“The transaction is not expected to result in any immediate material changes to employment or contract relationships at Ravenswood,” the proponent said in a statement to the stock market. “Progression of the Ravenswood Expansion Project development will continue to provide positive economic benefits for the local community and suppliers as well as the Queensland Government.”
Ravenswood has operated since the year 1987 and been owned by Resolute since 2004, during which the proponent has mined and processed 40 million tonnes of ore and produced more than 1.9 million ounces of gold.