Resolute completes US$20m early debt repayment

9 June 2021

Resolute Mining Limited

(Resolute or the Company)

Resolute Mining Limited (Resolute or the Company) (ASX/LSE:RSG) is pleased to advise that it has repaid US$20 million in advance of its first required debt repayment obligation.  

The early repayment reduces the Company's Revolving Credit Facility (the RCF) balance to US$130 million and lowers borrowing costs.  The RCF also provides Resolute with the flexibility to redraw funds to the US$150 million facility threshold, at the Company's discretion, up until the maturity date which is currently March 2023. 

A summary of the debt maturity balances following the US$20 million repayment is set out in the graph provided in the full version of the announcement at www.rml.com.au.

Resolute's first scheduled debt repayment under the Term Loan facility is in September 2021 and the Company's aim is to repay all future Term Loan obligations through the generation of operating cashflows.  Additional free cashflow will be applied to further reduce the RCF as options to extend the maturity of this facility, in accordance with the lending agreement, are assessed.

Chief Executive Officer, Mr Stuart Gale, was pleased to have commenced the early repayment of debt: "The repayment strengthens Resolute's balance sheet and reduces our borrowing costs. The RCF provides us with flexibility to continue to repay debt ahead of maturities as we generate positive cashflows from operations and the potential realisation of funds from asset sales."

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