Strategic Investments

Resolute has a portfolio of strategic investments in highly-prospective African-focused gold explorers, which provides a pipeline of future development opportunities. Resolute also has remaining future payments from the sale of the Ravenswood Gold Mine in 2020.

Loncor Gold Inc.

Resolute retains a 20% shareholding in TSX-listed Loncor Gold Inc. which owns 84.68% of the Imbo Project in the Democratic Republic of Congo. The main deposit, called Adumbi, has an Indicated Mineral Resource Estimate of 1.88Moz grading 2.08g/t and has a mining permit and Preliminary Economic Assessment already in place. Drilling is currently underway and is focused on resource expansion.

Ravenswood Promissory Notes

In March 2020 Resolute sold the Ravenswood Gold Mine in Queensland, Australia to a consortium comprising a fund (EMR) managed by specialist resources private equity manager EMR Capital Management Limited, and Singapore-listed mining and energy company, Golden Energy and Resources Limited (SGX:AUE) (GEAR). The sales consideration was a combination of upfront and future contingent payments as shown below.

Payments already received:

A$50 million upfront cash payment
A$50 million Gold Price Contingent Promissory Note

Future payments:

A$50 million Vendor Financing Promissory Note (VFPN)
up to A$150 million Upside Sharing Promissory Note (USPN)

The balance of the VFPN of accrued interest and principal is approximately A$67 million as end of March 2025. The VPFN has an annual coupon of 6% until 30 June 2025 after which the annual coupon increases to 12%. Interest is capitalised and is to be paid to Resolute upon maturity on 31 December 2027 but may be repaid early on future Ravenswood financings, liquidity event(s), or excess cash from Ravenswood.

The potential payment to Resolute associated with the USPN is based on a dynamic formula linked to the capital invested by EMR into the Ravenswood Mine and the ultimate sale price. The size of the USPN to Resolute will be determined by reference to the gross money multiple to EMR which is the gross proceeds (before payment of the USPN) divided by the total capital invested in the acquisition, development and operation of Ravenswood by EMR. Resolute will receive the payment of the USPN from the owners of Ravenswood based on the amount by which the gross money multiple exceeds a minimum threshold up to a cap of A$150 million as follows:

A$7.5 million for each 0.1 that the gross money multiple is above 2.5x up to 4.0x; and
A$5 million for each 0.1 that the gross money multiple is above 4.0x