Resolute Mining and its stockbroker Canaccord Genuity has booked institutional investors for meetings this week, fuelling expectations that it’ll be trying to build support for its first equity raising in 2½ years.
Market sources reckon Resolute Mining could try to raise as much as $200 million, which would be enough to just about extinguish net debt and provide headroom to fund expansion at its Syama Gold Mine in Mali.
It’s an expensive time for Resolute Mining to be thinking about raising equity - its shares are down 45 per cent this year and are trading 81 per cent lower than where it raised January 2020.
However, recent drilling results at Syama North confirmed potential for a new open pit operation adjacent to its existing Syama processing complex. The company has started a pre-feasibility study into low capital expansion options, due early next year.
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RSG Price at posting:
21.0¢ Sentiment: None Disclosure: Held
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