{"id":1107577,"date":"2019-03-26T21:04:47","date_gmt":"2019-03-26T21:04:47","guid":{"rendered":"http:\/\/resourceworld.com\/?p=55222"},"modified":"2019-03-26T21:04:47","modified_gmt":"2019-03-26T21:04:47","slug":"rnc-raising-12-million-for-aussie-mill-purchase","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1107577","title":{"rendered":"RNC raising $12 million for Aussie mill purchase"},"content":{"rendered":"
\"\"<\/a><\/p>\n

A 76-kg gold-rich specimen from the Beta Hunt mine in Western Australia. Source: RNC Minerals.<\/p>\n<\/div>\n

RNC Minerals <\/strong>\u00a0[RNX-TSX; RNKLF-OTCQX], aka Royal Nickel Corp., shares were active Tuesday March 26 after the company announced a $12 million bought deal financing, and a purchase option on a gold processing facility in Australia.<\/p>\n

RNC said the potential purchase of the Higginsville mill and mining operations from Westgold Resources Ltd.<\/strong> [WGX-ASX] could help to unlock the value of RNC\u2019s Beta Hunt mine in Western Australia.<\/p>\n

\u201cThe Higginsville mill would provide a significantly lower cost milling alternative for Beta Hunt [RNC expects that processing cost savings would be in excess of $15 per tonne, or a 35% reduction] , and add an expected 40,000-50,000 ounces of gold production in 2019.<\/p>\n

RNC said it will make a non-refundable option payment of A$4 million, payable immediately in RNC shares, for an exclusive 40-day period to complete due diligence. Closing would occur 30 days later if the purchase option is exercised.<\/p>\n

Upon closing, RNC would pay a further A$21 million in RNC shares and A$25 million in cash for a total consideration of A$50 million [including the A$4 million deposit satisfied in RNC shares].<\/p>\n

RNC shares fell 12% or $0.07 to 52 cents on volume of 8.24 million, making RNC one of the most actively traded stocks on the TSX, Tuesday. The shares trade in a 52-week range of $0.07 and $1.18.<\/p>\n

RNC recently attracted international attention following news of a once-in-a lifetime gold strike in a structure known as the Father\u2019s Day Vein at Beta Hunt. The company said it had extracted 9,250 ounces of gold, worth $15 million, from a 130-tonne cut of rock about 500 metres underground at the mine.<\/p>\n

The find included a single 95-kilogram chunk that contained 2,400 ounces of gold, worth about $3.8 million. A second 62-kilogram stone contained 1,620 ounces.<\/p>\n

\u201cThe combination of the Higginsville mill with the production potential of our Beta Hunt mine provide significant synergies, underpinned by the 35% per tonne cost saving or in excess of US$100 \/oz versus our current toll milling arrangements,\u201d said RNC President and CEO Mark Selby.<\/p>\n

\u201cThe transaction would transform RNC\u2019s gold operation in Western Australia to a multi-mine operation anchored by the 1.3 Mtpa HGO mill, the exciting high-grade and substantial resource potential at Beta Hunt, and a large land position in the Kalgoorlie gold region,\u201d Selby said.<\/p>\n

Meanwhile, a syndicate of underwriters led by Haywood Securities Inc. and Cantor Fitzgerald Canada Corp. have agreed to purchase 24.5 million common shares of RNC on a bought deal basis for 49 cents per share. The deal is expected to generate gross proceeds of $12 million.<\/p>\n

The underwriters have been granted a 30-day over-allotment option, allowing them to purchase an additional 3.8 million shares to cover over allotments.<\/p>\n

Net proceeds will be used for exploration drilling at Beta Hunt and to fund the cash component of the purchase price arranged in the option deal with Westgold.<\/p>\n","protected":false},"excerpt":{"rendered":"

RNC Minerals  [RNX-TSX; RNKLF-OTCQX], aka Royal Nickel Corp., shares were active Tuesday March 26 after the company announced a $12 million bought deal financing, and a purchase option on a… Read more »<\/a><\/span><\/p>\n","protected":false},"author":41,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[539,622],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1107577"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1107577"}],"version-history":[{"count":1,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1107577\/revisions"}],"predecessor-version":[{"id":1107578,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1107577\/revisions\/1107578"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1107577"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1107577"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1107577"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}