Resolute Mining Limited announced that it has received AUD 30 million from Ravenswood Gold Pty Ltd, which the Company sold on 31 March 2020. Resolute and Ravenswood have restructured the Gold Price Contingent Promissory Note and Vendor Financing Promissory Note to support the Ravenswood Mine in its financing. Based on the original agreements between Resolute and Ravenswood, Resolute was due to receive a Gold Price Contingent Amount after cumulative ounces produced from Ravenswood exceeded 500,000oz of gold over a four-year period.

The payment amount was dependent on certain bands linked to gold price: AUD 10 million if the average gold price is greater than AUD 1,900/oz; AUD 20 million if the average gold price is greater than AUD 1,975/oz; AUD 30 million if the average gold price is greater than AUD 2,050/oz; AUD 40 million if the average gold price is greater than AUD 2,075/oz; and AUD 50 million if the average gold price is greater than AUD 2,100/oz. Resolute and Ravenswood have agreed to amend the Gold Price Contingent Promissory Note including that the requirements of the clause regarding Payment of Gold Price Contingent Amount of the Original Gold Price Contingent Promissory Note are deemed to have been met. Accordingly, the Gold Price Contingent Amount payable to Resolute is AUD 50 million (the highest payable amount) and is payable in two tranches as follows: AUD 30 million paid to Resolute and received on 19 June 2024; and AUD 20 million to be paid to Resolute no later than 30 September 2024.

Additionally, Resolute has amended the AUD 50 million Vendor Financing Promissory Note that was originally due in March 2027. The new structure is as follows: Reset the principal to the increased amount of AUD 64 million to account for capitalised accrued interest; Maintain the annual coupon at 6% until 30 June 2025 after which the annual coupon increases to 12%. Interest will be capitalised and is to be paid to Resolute upon maturity; and Promissory note maturity extended to 31 December 2027 but may be repaid early on future Ravenswood financings, liquidity event(s), or excess cash from Ravenswood.

The payment is determined by reference to the gross money multiple to EMR which is the gross proceeds (before payment of the Upside Sharing Payment) divided by the total capital invested in the acquisition, development and operation of Ravenswood by EMR. Resolute will receive the Upside Sharing Payment from the owners of Ravenswood based on the amount by which the gross money multiple exceeds a minimum threshold up to a cap of AUD 150 million as follows: AUD 7.5 million for each 0.1 that the gross money multiple is above 2.5x up to 4.0x; and AUD 5 million for each 0.1 that the gross money multiple is above 4.0x.