TORONTO, Aug. 9, 2017 /CNW/ - RNC Minerals (TSX: RNX) ("RNC") announced today that it has extended the US$2.5 million unsecured debt facility, entered into in November 2016, that was arranged by Riverfort Global Capital ("Riverfort").
Mark Selby, President and CEO of RNC, commented, "This restructuring improves our cash flows in the final portion of the year as we complete the production ramp-up at Beta Hunt. With a 50% increase in mined gold production during Q2 and at least 90,000 tonnes to be processed in two gold milling tolls currently underway, including our first toll under our lower cost tolling agreement with Westgold, we are very pleased with our progress and expect continued quarterly increases in production to deliver our previously announced 2017 production guidance."
Under the agreed terms of the extended facility, the lenders will advance US$3 million to RNC, US$1.35 million of which will be used to repay the remaining balance currently owing under the facility (which was originally due to be repaid by November 2017). Principal under the extended facility will be repaid starting in November 2017, with US$250K due each month until and including July 2018 and a final bullet payment of US$750K due in August 2018. The facility will continue to bear interest at 12%. As part of the transaction, RNC will issue 5.9 million 24 month warrants to the lenders, exercisable at a strike price of $0.24 per share.
RNC is a multi-asset mineral resource company with a portfolio of gold and base metal production and exploration properties. RNC's principal assets are the producing Beta Hunt gold and nickel mine in Western Australia, a 50% interest in a nickel joint venture with Waterton that holds the Dumont Nickel Project in the Abitibi region of Quebec, and a 30% stake in the producing Reed Mine in the Flin Flon-Snow Lake region of Manitoba, Canada. RNC also owns a majority interest in the West Raglan and Qiqavik projects in Northern Quebec. RNC has a strong management team and Board with over 100 years of mining experience at Inco and Falconbridge. RNC's common shares trade on the TSX under the symbol RNX. RNC shares also trade on the OTCQX market under the symbol RNKLF.
Cautionary Statement Concerning Forward-Looking Statements
This news release contains "forward-looking information" including without limitation statements relating to the completion of the Financing.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of RNC to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could affect the outcome include, among others: future prices and the supply of metals; the results of drilling; inability to raise the money necessary to incur the expenditures required to retain and advance the properties; environmental liabilities (known and unknown); general business, economic, competitive, political and social uncertainties; accidents, labour disputes and other risks of the mining industry; political instability, terrorism, insurrection or war; or delays in obtaining governmental approvals, projected cash costs, failure to obtain regulatory or shareholder approvals. For a more detailed discussion of such risks and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, refer to RNC's filings with Canadian securities regulators available on SEDAR at www.sedar.com.
Although RNC has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this news release and RNC disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.
SOURCE RNC Minerals