Resolute to Boost Gold Production Above 500koz with US$150M Côte d’Ivoire Acquisition

Strategic Acquisition Expands African Footprint

Resolute Mining Limited (ASX/LSE: RSG) has taken a decisive step to broaden its African gold mining portfolio by entering into a binding agreement to acquire the Doropo and ABC gold projects in Côte d’Ivoire from AngloGold Ashanti for a total consideration of US$150 million. This transaction marks Resolute’s entry into a third mining jurisdiction, complementing its established operations at the Syama Gold Mine in Mali and the Mako Gold Mine in Senegal.

The acquisition is structured with an upfront payment of US$25 million, followed by two deferred instalments of US$50 million and US$75 million payable 18 and 30 months post-closing, respectively. Additional financial terms include a 2% royalty on the ABC Project and a contingent US$10 million milestone payment tied to a feasibility study confirming over 1 million ounces of gold reserves at ABC. Notably, the deal also involves the transfer of Resolute’s exploration permits in Guinea to AngloGold, subject to government approval.

Doropo: A Near-Term Production Asset with Strong Economics

The Doropo Project is an advanced-stage asset located in the northeast Bounkani region of Côte d’Ivoire, boasting a Mineral Reserve of 1.88 million ounces grading 1.53 g/t gold, as per a 2024 Definitive Feasibility Study (DFS). The DFS envisages an open-pit operation producing an average of 167,000 ounces annually over a 10-year mine life, with an all-in sustaining cost (AISC) of approximately US$1,047 per ounce.

Financial metrics from the DFS are compelling, featuring a post-tax internal rate of return (IRR) of 34% and a payback period of just over two years, assuming a gold price of US$1,900 per ounce. Resolute plans to further optimise and de-risk the project by updating pit designs to align with its internal gold price assumptions, incorporating diesel backup power to enhance plant reliability, and refreshing cost estimates to reflect 2025 pricing.

Regulatory progress is encouraging, with the environmental permit granted in mid-2024 and the exploitation permit anticipated shortly. Resolute aims to reach a final investment decision by the end of 2025, targeting construction over two years and first production by mid-2028. The company is initiating project financing discussions, confident in strong market appetite given Doropo’s high-quality profile.

ABC Project: Exploration Upside in a Proven Gold District

The ABC Project represents a greenfield exploration opportunity with an Inferred Mineral Resource of 2.16 million ounces at 0.9 g/t gold. Located approximately 600 km west of Doropo in the Kabadougou region, the project is less advanced but offers significant potential to expand Resolute’s resource base in Côte d’Ivoire. The acquisition includes a 2% net smelter return royalty on ABC’s existing exploration permits, aligning AngloGold’s interests with future project success.

Resolute plans targeted drilling campaigns to explore higher-grade zones within ABC, aiming to convert resources to higher confidence categories and unlock value through exploration-led growth.

Funding and Portfolio Implications

The acquisition will be funded from Resolute’s existing liquidity, which stood at a net cash position of US$100.3 million as of March 2025, supplemented by operational cash flows from Syama and Mako. The company is also pursuing external project financing to support Doropo’s development capital requirements.

This transaction is expected to be highly accretive, lifting Resolute’s annual gold production to over 500,000 ounces and diversifying its revenue streams across three stable West African jurisdictions. The addition of Doropo’s low-cost production profile is anticipated to enhance group cash flow and reduce overall costs.

Outlook and Strategic Positioning

Resolute’s Managing Director and CEO, Chris Eger, emphasised the strategic significance of the acquisition, highlighting the company’s repositioning for growth and its commitment to creating shareholder value. The integration of a skilled in-country team and ongoing optimisation efforts are key to advancing Doropo toward production readiness.

While the acquisition brings exciting growth prospects, uncertainties remain around permitting timelines and the final investment decision. The Mineral Reserves and Resources are foreign estimates not fully compliant with JORC standards, which may require further validation. Additionally, the transfer of Guinea permits is contingent on government approval, adding a layer of regulatory complexity.