Total
0
Shares
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Mining company resolute confirmed its official acquisition of Toro Gold, increasing its holding in Africa
  • The newly acquired Mako Gold Mine in Senegal produced 156,926 ounces of gold last year
  • Resolute’s share price is up 4.14 per cent today, currently sitting at $1.94 a piece in a $1.4 billion market cap

Mining company Resolute’s share price has risen in what’s been a day of loses on the ASX.

Up 4.14 per cent, it’s periodically the best performing stock of the day on the ASX 200.

Resolute told the market this morning its first stage acquisition of Toro Gold is complete, after airing the deal last month.

The company purchased 94 per cent of Toro’s shares and a series of Resolute employees replaced Toro nominee’s on the gold miner’s board. As it stands, Resolute has immediate control of Toro.

Toro’s flagship project, the Mako Gold Mine in Senegal, is expected to strengthen cash flow and Resolute’s position in Africa. Last year the mine produced 156,926 ounces of gold.

The addition of the mine brings Resolute’s revised yearly gold production to 400,000 ounces.

Resolute paid US$274 million to acquire Toro Gold, with US$130 million in cash and 142.5 million Resolute shares.

CEO and Managing Director of Resolute John Welborn said “the Mako Gold Mine is a high quality, strongly cashflow generative producing asset which complements our existing portfolio of large-scale, long-life mines”.

“The Mako Gold Mine will be our tenth operating mine and one which forms an important part of out next phase growth,” John said.

As part of the acquisition, Resolute is assuming Toro’s position in a joint venture with Predictive Discovery in Côte d’Ivoire. The partnership covers 2,344 squared kilometres of land containing gold projects.

John will address attendees at the Diggers and Dealers mining conference tomorrow morning.

Thousands of industry professionals have flocked to WA’s gold capital, Kalgoorlie, for the three-day event.

Resolute’s share price is currently sitting at $1.94 per share in a $1.41 billion market cap.

More From The Market Herald

" Aurizon (ASX:AZJ) to buy One Rail for $2.35b

Aurizon (AZJ) has signed an agreement with Macquarie Asset Management to purchase One Rail Australia for $2.35 billion.
Rio Tinto (ASX:RIO)- CEO, Jakob Stausholm

" Rio Tinto (ASX:RIO) aims to half carbon footprint by 2030

Global mining giant Rio Tinto (RIO) has pledged to half its carbon footprint by 2030.
Orocobre (ASX:ORE) - CEO and MD, Martin Perez de Solay

" Orocobre (ASX:ORE) tables record Mt Cattlin production after Galaxy merger

Shares in lithium big-cap Orocobre (ORE) are trading green this morning after the company announced record production from its new Mt Cattlin mine
Lynas (ASX:LYC) - Managing Director & CEO, Amanda Lacaze

" Lynas Rare Earths’ (ASX:LYC) sales drop as COVID cases slowed production

Lynas Rare Earths (LYC) has reported a drop in sales revenue after a recent spike in COVID-19 cases in Malaysia led to a