Resolute sells mine royalty for $12m

Perth-based Resolute Mining could pocket nearly $12 million after it agreed to sell the royalty it receives from production at Dominion Mining's Challenger gold mine.

Resolute was receiving $20 for each ounce of gold produced from a specified area of the mine in South Australia.

The company said it had reached agreement with Franco Nevada Australia, which will pay some $11.6 million for the Challenger Royalty.

The sale is subject to a pre-emptive right held by Dominion where the miner can elect to buy the royalty on the same terms.

"This is an attractive price for a non core asset, the proceeds of which will be useful for us through the Syama commissioning and ramp up period," Resolute chief executive Peter Sullivan said.