Australian mining company Resolute Mining has signed definitive agreements to sell its Queensland-based Ravenswood gold mine to a consortium for AUD300m ($207.54m) in cash.

The consortium is comprised of fund managed by private equity manager EMR Capital, along with Golden Energy and Resources, a Singapore-based energy and mining company.

Under the terms of the transaction agreement, Resolute will receive up to AUD300m ($207.54m) in cash, where A$100m ($69.18m) will be received upfront and up to A$200m ($138.36m) in potential future payments.

The future payments will be based on future gold prices, future gold production from the Ravenswood gold mine, and the investment outcomes from the Ravenswood Gold Mine for EMR Capital.

EMR is a specialist resources private equity manager, focused on developing and operating Australia-based mining assets. GEAR is an energy and resources company operating in Asia Pacific. The company produces coal from assets in Indonesia and holds strategic stake investments in two mining companies.

Resolute stated: “The transaction has been structured to maximise Resolute’s exposure to the future success of the Ravenswood Expansion Project while transferring the capital expenditure funding requirements and development obligation to a highly credentialed and experienced consortium with a strong relevant track record in successful project development.”

Ravenswood gold mine will continue with existing mine plan

Resolute said that the Ravenswood Gold Mine will continue with existing mine plan and development plans, without any immediate changes to the current employment or contract relationships.

The closing of the transaction is subject to certain conditions including approval from Australia’s Foreign Investment Review Board, approval from Indicative Ministerial for the transfer of tenements, Ministerial consent for the transfer of project specific environmental approval.

Resolute said that the sale aligns with its goal of being a low-cost multi-mine African-focused gold producer.

In addition, the company expects the transaction terms to maximise financial returns from the Ravenswood gold mine with no future capital or funding requirements.