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RNC Minerals Announces Completes Higginsville Operations Acquisition

Mining News - Published on Mon, 17 Jun 2019

Image Source: RNC Minerals
RNC Minerals announced that it has closed the acquisition of the Higginsville Gold Operation from Westgold Resources Limited. RNC has paid Westgold AUD 25 million in cash and issued a total of 56.9 million shares in satisfaction of the HGO purchase price. The cash portion of the HGO purchase price was funded by a new senior secured CAD 35 million debt facility entered into by RNC. This facility will also fund working capital requirements of the combined business. Mr Mark Selby, President and CEO of RNC, commented "Today's announcement is another major step forward for RNC. 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 million tonne per annum HGO Mill, the high grade and bulk resource potential at Beta Hunt and a large land position in the Kalgoorlie gold region. RNC is now focused on the rapid integration of Beta Hunt and HGO, which creates tremendous value for RNC shareholders."

Mr Selby said that "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."

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Posted By : Sanju Moirangthem on Mon, 17 Jun 2019
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