The Resolute Mining Limited (ASX: RSG) share price has popped 6.22% in early trade after a key announcement from the Aussie miner this morning.
What did Resolute Mining announce this morning?
Resolute provided a response to an article in the Australian Financial Review (AFR) yesterday.
The Street Talk article suggested the Aussie gold miner is closing in on the sale of its Queensland Ravenswood gold mine.
Melbourne private equity group EMR Capital was touted as a potential buyer by the AFR, with Resolute tipped to get less than its $300 million asking price.
Both parties declined to comment yesterday as the Resolute Mining share price closed flat at $1.12 per share.
That has all changed after this morning's ASX announcement confirming negotiations between the group, with the Resolute Mining share price shooting up to $1.20 per share in early trade.
Resolute has previously disclosed that it is evaluating the future capital demands of the full Ravenswood Expansion Project. The Aussie gold miner is continuing to look at how to maximise value for its shareholders.
Negotiations between Resolute and EMR are "significantly advanced" on the Ravenswood sale with total proceeds of "up to A$300 million". That payment would comprise A$100 million of initial upfront value and up to A$200 million in deferred consideration.
Negotiations and documentation are "advanced" according to Resolute's release. However, there is currently "no certainty that an agreement for the sale of Ravenswood will be reached between Resolute and EMR Capital."
How has the Resolute Mining share price performed recently?
There's no doubt that 2019 was a rollercoaster of a year for the Resolute Mining share price.
Prior to this morning's positive share price movements, in the last 12 months the group's shares had edged lower to $1.12 per share, despite hitting $2.12 in August.
The Aussie gold miners have had a generally strong year as risk-off moves sent gold prices climbing higher. Lower all-in sustaining cost and higher company earnings also boosted capital gains in 2019.
