Why the Resolute Mining (ASX:RSG) share price is racing 6% higher today

This gold miner is on form on Thursday…
The post Why the Resolute Mining (ASX:RSG) share price is racing 6% higher today appeared first on The Motley Fool Australia. –

The Resolute Mining Limited (ASX: RSG) share price is charging higher today.

In morning trade, the embattled gold miner’s shares are up 6% to 58.7 cents.

Despite this gain, the Resolute Mining share price is still down 30% since the start of the year.

Why is the Resolute Mining share price charging higher?

Investors have been bidding the Resolute Mining share price higher today following the release of a positive announcement.

According to the release, the company has signed an agreement to sell its interest in the troubled Bibiani Gold Mine to Asante Gold Corporation. The sale will be for a total cash consideration of US$90 million. This comprises a US$30 million deposit, US$30 million on or before six months from completion, and US$30 million on or before 12 months from completion.

Positively, this agreement has received Ministerial Consent, having been approved by the Ghanaian Honourable Minister of Lands and Natural Resources. Earlier this year the Minister had blocked the sale of the asset to China’s Chifeng Jilong for ~$105 million.

The completion of the transaction is expected within 10 days, pending no material adverse changes over this period.

Resolute Mining’s Managing Director and Chief Executive Officer, Stuart Gale, commented: “Resolute has made a commitment to deliver sustainable and enduring value to shareholders and to the communities in which we operate. Resolute is proud of its contribution to Ghana and particularly proud to have the opportunity to transfer ownership in Bibiani to a highly regarded team with strong ties to Ghana.”

“The transaction is consistent with our strategic focus on our core operating assets and strengthening the balance sheet, with the initial cash receipt of US$30 million to be applied to the voluntary repayment of debt. We do not expect there to be any material tax implications following the completion of this transaction,” he added.

The post Why the Resolute Mining (ASX:RSG) share price is racing 6% higher today appeared first on The Motley Fool Australia.

Should you invest $1,000 in Resolute Mining right now?

Before you consider Resolute Mining, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Resolute Mining wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

Why AVZ Minerals, Imugene, Pointerra, & Resolute shares are dropping

Why the Resolute Mining (ASX:RSG) share price is crashing 8% today
ASX 200 midday update: Rio Tinto charges higher, IRESS rockets, Macquarie update

These are the 10 most shorted shares on the ASX

ASX 200 Weekly Wrap: COVID wobbles ASX as shares retreat

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!