Resource and Investment NL (ASX: RNI) shares are in pre-open this morning following the Australian Stock Exchange granting the company a trading halt.
The halt was requested pending an increase and extension of the company’s finance facility, and the exercising of an option to acquire the Peak Hill gold project in Western Australia.
RNI is acquiring the project from Montezuma Mining Company (ASX: MZM), with the deal due to close by Friday 31 January 2014 by which time, RNI will pay Montezuma Mining $2.8 million in cash, and issue 8,400,000 fully paid ordinary shares in RNI, and 2.1 million $0.35 options in RNI.
Montezuma will also be granted a 1% gross royalty, capped at $1 million, on all revenue received from future production from the Peak Hill Project.
The halt will remain in place until the opening of trade on Monday 3rd February 2014, or earlier if an announcement is made to the market.
Miles Kennedy
The RNI board includes Miles Kennedy as chairman, who is also the former chairman for Sandfire Resources (ASX: SFR).
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