RNC Minerals has closed a C$12-million bought deal financing by issuing approximately 24.5 million common shares at a price of C$0.49 each.
The offering was underwritten by a syndicate co-led by Haywood Security and Cantor Fitzgerald Canada. The underwriters have also been granted a 15% over-allotment of 3.7 million shares at the same price per share.
RNC recently made a high grade discovery - the Father's Day vein - at its 100% owned Beta Hunt gold mine in Western Australia. The company has completed a 40,000-metre drilling program and expects to use the results to update the resource estimate and mine plan in Q2 2019.
The Beta Hunt underground mine began producing both nickel and gold in 2015. RNC has decided to curtail the nickel output and concentrate on gold. As of December 2017, the mine has 2.4 million tonnes of indicated resources grading 3.2 g/t gold and containing 239,000 oz. The inferred portion was 2.0 million at 3.2 g/t gold for 208,000 oz. of contained gold.
(This article first appeared in the Canadian Mining Journal)