Resolute US$300m debt refinancing

Allens has advised the syndicate of lenders to Resolute Mining Limited (Resolute) on an upsizing of its loan facilities to US$300 million (the Facility).

The facility will be used to repay the US$63 million secured project loan facility from Taurus Funds Management Limited, which funded the initial construction of the Mako Gold Mine in Senegal and replace US$195 million of existing senior bank debt facilities.

Listed on both the Australian Securities Exchange and the London Stock Exchange, Resolute has more than 30 years of experience as an explorer, developer and operator of gold mines in Australia and Africa. Accessing up to US$300 million in senior debt will support the company in delivering future value for its shareholders.

Drawdown under the facility occurred on 25 March 2020, giving Resolute additional liquidity, said lead Partner Ben Farnsworth.

‘We were delighted to advise the syndicate banks for Resolute on this US$300m refinancing, which will play a pivotal role in funding its future growth initiatives during these challenging economic times.

‘Our team of experts was pleased to help Resolute secure an upsized senior debt facility. The facility also simplifies the company’s capital structure, removes conditions associated with the project loan facility and will reduce yearly borrowing costs,’ said Ben.

This transaction builds on Allens’ extensive experience advising on the provision of debt facilities for mining projects, which recently included funding for Northern Star Resources Limited’s acquisition of 50% of the Kalgoorlie Super Pit gold mine.

Wright Legal acted for Resolute.

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