Proactive Investors - Run By Investors For Investors

RNC Minerals closes deal for Higginsville gold operation

The miner today also reported a C$35 million credit facility for the next phase of its growth
A gold processing mill
Pictured is the Higginsville mill

RNC Minerals Corp (TSE:RNX) has closed its previously announced Higginsville mill (HGO) from Westgold Resources Ltd for A$25 million in cash and issued 56.9 million shares.

The mill will significantly reduce milling costs for the firm's Beta Hunt mine, while HGO also includes a 367,000 ounce historical reserve within a 1.2 million ounce historical measured and indicated gold resource on a 386 sq km land package in the Kalgoorlie gold region.

"Today's announcement is another major step forward for RNC," said Mark Selby, chief executive at RNC.

DEEP DIVE: RNC Minerals catches two major gold discoveries, but the yellow metal is only part of the miner's story

"The combination of the Higginsville Mill and our Beta Hunt Mine will transform RNC's gold operations in Western Australia into a multi-mine operation anchored by the 1.3 Mtpa HGO Mill, the high grade and bulk resource potential at Beta Hunt (which was once again confirmed last week), and a large land position in the Kalgoorlie gold region."

The miner today also reported a C$35 million credit facility, which has an initial term of 12 months, which can be extended for a further six months.

The facility bears interest at 10% a year paid monthly. A 1% cash commitment fee was paid at closing, along with a 2% share fee whereby RNC issued 1.46 million of its shares.

Selby said: "We had significant interest from a number of financing sources and are very pleased to welcome a new financing partner to help us build RNC through our next phase of growth.

"This partner has an excellent track record of providing capital to help build small and mid-cap companies across a range of industries. The financing package provides significant flexibility at a competitive cost which allows us to complete this acquisition and minimize equity dilution."

Contact the author at [email protected]

Follow him on Twitter@Gile74

View full RNX profile View Profile

RNC Minerals Timeline

Related Articles

Mark Wilson and Mark Creasy with a Nova-Bollinger core sample Creasy showed Wilson, telling him, ‘There’s what you’re looking for, now go find it’
February 20 2019
A Creasy team will move to Rockford next as exploration resumes.
electicity wires
March 25 2019
'We have four key projects which we are developing in parallel'
Bauxite on a ship
January 20 2019
The company will undertake a number of site preparation activities in the March quarter.

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use