Resolute Mining to sell up to A$60 million four-year convertibles to yield 12%

By Rebecca Melvin

New York, Nov. 18 - Australia's Resolute Mining Ltd. plans to price up to A$60 million of four-year convertible notes with a yield of 12%, according to a news release.

The notes will be part of up to $72.5 million of capital raised via Patersons Securities Ltd. as underwriter.

The notes, with a face value of $0.50, are being placed with shareholders, clients of Patersons and the general public. Up to $10 million are being placed with shareholders.

Resolute Mining will also issue one free attaching option for every three convertible notes placed under the issue.

All of the convertible notes will be listed and will convert into one share at the election of the holder.

Proceeds of the capital raising will be used to complete the redevelopment and ramp-up of the Syama gold project in Mali and maintain the company's other developments.

First gold production from the Syama oxide circuit is imminent with commissioning of the sulphide plant anticipated in the first quarter of 2009.

Resolute Mining is a developer of gold projects based in Perth, Australia.

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