Received Environmental Permit Authorisation to recommission Bibiani Underground mine & secured US$100M revolving credit facility: Resolute Mining Limited’s (ASX: RSG) stock fell 1.35% on July 13, 2018 due to lower than expected production update reported yesterday. However, the company has received Environmental Permit Authorisation (EPA) to recommission the Bibiani Underground mine and processing plant at Bibiani by the Ghanaian Environmental Protection Agency. EPA is valid for a period of 18 months but can be renewed by application to the Agency. The company has completed the Feasibility Study Update which reflects the potential for a long life, high margin project. The Bibiani Mineral Resource was upgraded by 40% to 21.7 million tonnes (Mt) at 3.6 grams per tonnes (g/t) gold (Au) at a 2g/t Au cut off for a total of 2.5 million ounces (Moz). This mine has the potential for production of approximately 100,000 ounces of gold annually over a ten year life of mine and the All-In Sustaining Costs is projected to be between US$700 per ounce to US$800 per ounce for Life of Mine (LOM) production of ~ 1Moz of gold. On the other hand, RSG has secured a US$100 million Revolving Loan Facility with Investec Australia Limited with flexible access to low cost funding for new growth initiatives. This new revolving facility has an initial term of three years. Further, the new facility is currently undrawn, and can have future extension, and will allow RSG to pursue growth opportunities as they arise. Meanwhile, RSG stock has risen 3.49% in three months as on July 12, 2018 and is trading at a P/E of 8.59x.
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