Up 183% this year, ASX 300 gold stock announces $47 million divestment

The surging ASX 300 gold miner is cashing in on a Canadian asset sale.

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Key points

  • Resolute Mining shares have delighted investors with a remarkable 183% gain since December 2024.
  • Resolute Mining supports Loncor Gold's sale to Chengtun Mining, reinforcing its financial position and aiding strategic growth in Africa.
  • The company's Doropo Gold Project shows promising growth with a new 4.4-million-ounce Mineral Resource Estimate, up 28% from before.

S&P/ASX 300 Index (ASX: XKO) gold stock Resolute Mining Ltd (ASX: RSG) has made some very happy shareholders in 2025.

How happy?

Well, if you'd bought shares near market close on 31 December, you'd currently be sitting on gains of 183%. So, pretty darn happy!

In morning trade today, Resolute Mining shares are edging lower, down 0.4% at $1.14 apiece.

For some context, the ASX 300 is up 0.9% at this same time. And for a better comparison of golden apples to golden apples, the S&P/ASX All Ordinaries Gold Index (ASX: XGD) is up 0.7%.

Here's what's happening with the ASX 300 gold stock today.

ASX 300 gold stock cashing in on Loncor sale

This morning, Resolute Mining released an update on its shareholding in Canadian-based gold miner Loncor Gold Inc (TSE: LN).

Yesterday, Loncor reported on its sale agreement with Chengtun Mining Group. Under the agreement, Chengtun Mining will acquire all the outstanding common shares of Loncor for C$1.38 per Loncor Share in an all-cash transaction. Management expects the transaction to close no later than the first quarter of 2026.

Via a Canadian subsidiary, Resolute Mining owns 31,450,000 common shares in Loncor. The ASX 300 gold stock said those are valued at approximately C$43.4 million (AU$47.7 million) at the current exchange rate.

Resolute said it has entered into a voting support agreement in which it has agreed to vote its shares in favour of the Chengtun Mining transaction.

What did management say?

Commenting on the ASX 300 gold stock's divestment, Resolute Mining CEO Chris Eger said, "Resolute is pleased to support the Loncor transaction."

Eger added:

The sale proceeds will further reinforce Resolute's balance sheet and help advance the company's strategic growth initiatives across our African-focused gold portfolio. Key priorities include the development of the Doropo Project in Cote d'Ivoire [formerly Ivory Coast] and the extension of the Mako Mine in Senegal.

What's happening with Resolute Mining's Doropo Gold Project?

Resolute Mining shares got a big lift on 8 September after the ASX 300 gold stock released an updated Mineral Resource Estimate (MRE) for the Doropo Gold Project

Resolute Mining announced its acquisition of the project on 1 May from AngloGold Ashanti (ASX: AGG) for US$150 million.

The new 4.4-million-ounce MRE the miner reported was up 28% from the prior estimate.

"We are confident that Doropo will be a high-quality long-life mine underpinned by the expectation of further resource growth at Kilosegui and Souwa," Eger said on the day.

"The major increase over the existing Resource indicates major upside at Doropo and is a key consideration in the updated DFS," he added.

Motley Fool contributor Bernd Struben 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 Scott Phillips.

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