TORONTO, July 23, 2018 /CNW/ - RNC Minerals ("RNC") (TSX: RNX) announces that, further to its news release dated June 18, 2018 relating to the US$10 million RNC convertible note held by Waterton Precious Metals Fund II Cayman, LP and Waterton Mining Parallel Fund Onshore Master, LP (collectively, "Waterton") (which prior release indicated that, in the event the full US$10 million of principal was converted into units of the Dumont Nickel-Cobalt JV (the "JV"), RNC's interest would be diluted to approximately 28%), RNC has received a conversion notice for the full principal amount of the debenture. As a result, once the conversion is executed, RNC's interest in the JV will be diluted to approximately 28%.
As a holder of a 28% interest, RNC will retain the right to nominate one of four directors, the right to act as manager and participate in all key decisions, certain veto rights, and certain liquidity rights, obligations and protections (including rights of first refusal and special exit arrangement provisions which, if applicable, would provide that both partners sell their JV interest at the same price and on the same terms, and, in certain instances, require a 120 day auction process led by a third party financial advisor to ensure the project receives an appropriate market valuation).
Mark Selby, President and CEO of RNC, commented that "Dumont remains one of the world's premier battery metals projects, contains the world's largest undeveloped reserves of nickel and 2nd largest undeveloped reserves of cobalt. RNC will continue to work to maximize value from Dumont and our nickel expertise, including our downstream roasting approach, for RNC shareholders."
About RNC Minerals
RNC is a multi-asset mineral resource company with a portfolio of nickel, cobalt, and gold production and exploration properties. RNC has a 28% interest (post the conversion described in this news release) in a nickel joint venture with Waterton that owns the Dumont Nickel-Cobalt Project located in the Abitibi region of Quebec which contains the second largest nickel reserve and eighth largest cobalt reserve (the largest undeveloped nickel reserve and second largest undeveloped cobalt reserve in the world). RNC has a 100% interest in the producing Beta Hunt gold and nickel mine located in Western Australia and a 40% interest in Orford Mining Corporation, a mineral explorer focused on highly prospective and underexplored areas of Northern Quebec and the Carolina Gold Belt in the United States. RNC also has a 27% stake in the producing Reed Mine in Manitoba. 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 liquidity and capital resources of RNC, production guidance and the sale of the Beta Hunt Mine as well as the potential of the Dumont development project.
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: failure of the parties to sign definitive agreements and satisfy conditions of closing; 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