Ann: Sale of Challenger Royalty , page-4

The longest capital raising in history?

Hmmm... The gold hedging business was a bit duff

You just get the feeling that things are unwinding a litte.

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Resolute raises more funds for Mali gold mine

Kristie Batten
Thursday, 5 February 2009

RESOLUTE Mining announced it has agreed to sell the Challenger royalty to Toronto-listed resource investment company Franco Nevada for around $A11.6 million.

Dominion Mining pays Resolute a royalty of $20 per ounce produced from an area of Gawler tenure in South Australia that includes the Challenger mine.

The deal came about after Resolute sold its 50% share in the project to joint venture partner Dominion in 2000.

The sale of the royalty is subject to a pre-emptive right held by Dominion whereby the company can choose to purchase the royalty on the same terms as that agreed with Franco Nevada within 21 days.

The Challenger gold mine produced 52,283 ounces of gold in the six months to December 31, 2008.

Resolute has raised $64 million in recent months which, along with the royalty sales proceeds, will be used to fund development of the company’s Syama gold mine in Mali.

“This is an attractive price for a non-core asset, the proceeds of which will be useful for us through the Syama commissioning and ramp-up period,” Resolute chief executive officer Peter Sullivan said.