The Resolute Mining Ltd (LON: RSG) share price plunged 8% after announcing that it had received the final payment of $10 million related to the sale of its Bibiani Gold Mine in Ghana to Asante Gold Corporation (Asante).
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
The mining company has been on an equity-raising spree after raising A$164 million from institutional investors earlier this month. However, investor sentiment towards the company has remained positive despite the massive amount of capital raised by the firm.
Resolute Mining said that it would use A$140 million to repay some of its debts, while the remaining $20 million would be used to fund its working capital, pay the costs of the fundraise, and fund the expansion of its Syama North project.
The mining company has a new management team leading its turnaround, making investors quite confident in the team’s leadership. The company currently has a retail offer for its shareholders to raise A$104 million.
All the money raised should leave the firm in a solid financial position, having repaid most of its debt obligations and with enough funds to expand its operations and remain operational. However, the retail offering is only open to some shareholders. In addition, only shareholders in certain jurisdictions can participate in the offer.
The company is currently in commercial talks with Asante Gold Corporation about paying the environmental bond and interest in the sale agreement.
Resolute Mining shares have fallen 47.24% this year, and many hope its share price will recover next year following the recent capital raising activities. However, only time will tell.
*This is not investment advice.
Resolute Mining (RSG) stock price.
The Resolute Mining share price fell 8.01% to trade at 10.05p, from Friday’s closing price of 10.95p.Â
