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TORONTO, Jan. 16, 2019 /CNW/ - RNC Minerals (TSX: RNX)
("RNC" or the "Company") is pleased to announce that it has closed
its previously announced bought deal and concurrent private
placement financing of a total of 19,565,000 common shares of the
Company at a price of $0.46 per
common share for aggregate gross proceeds of $8,999,900.
The financing consisted of an offering of 13,044,000 common
shares, sold on a "bought deal" basis at a price of $0.46 per common share through a syndicate of
underwriters, led by Haywood Securities Inc., and including
Laurentian Bank Securities Inc., BMO Capital Markets, Canaccord
Genuity Corp., and Macquarie Capital Markets Canada Ltd.
(collectively, the "Underwriters") and Red Cloud Klondike Strike
Inc. as selling agent, for gross proceeds to the Company of
$6,000,240 (the "Offering") and,
concurrent with the Offering, the sale, on a "bought deal" private
placement basis, of 6,521,000 common shares of the Company at a
price of $0.46 per common share for
additional gross proceeds of $2,999,660 (the "Private Placement"). The Private
Placement has been sold to Eric
Sprott's holding company, 2176423
Ontario Ltd.
In connection with the Offering, the Company has granted the
Underwriters an over-allotment option to purchase up to an
additional 1,956,600 common shares at $0.46 per common share, exercisable in whole or
in part, at any time and from time to time on or prior to the date
that is 30 days following the closing of the Offering. If this
option is exercised in full, an additional $900,036 in gross proceeds will be raised
pursuant to the Offering and the aggregate gross proceeds of the
Offering will be $6,900,276.
The securities offered in the Offering and the Private Placement
have not been, and will not be, registered under the U.S.
Securities Act or any U.S. state securities laws, and may not be
offered or sold in the United
States or to, or for the account or benefit of, United States persons absent registration or
any applicable exemption from the registration requirements of the
U.S. Securities Act and applicable U.S. state securities laws.
As a result of the Private Placement, Mr. Sprott's holdings
increased to more than 10% of the outstanding common shares. On
November 15, 2018, Mr. Sprott
acquired control over 1,000,000 common shares such that Mr. Sprott
beneficially owned or exercised control or direction over
41,216,042 common shares and, when taking into account the
Company's prior issuances of common shares, his percentage holdings
dropped from approximately 10.1% (as reported in his early warning
report dated September 20, 2018) to
approximately 9.2% of the then outstanding shares. Mr. Sprott now
beneficially owns or exercises control or direction over 47,737,042
common shares, representing approximately 10.2% of the outstanding
common shares. Mr. Sprott purchased the common shares for
investment purposes. He has a long-term view of the investment and
may acquire additional securities either on the open market or
through private acquisitions or sell the
securities either on the open market or through private dispositions in the future depending on
market conditions, reformulation of plans and/or other relevant
factors. The updated early warning report will appear under the
Company's profile on SEDAR or may be obtained by calling Mr. Sprott
at (416) 362-7172 (200 Bay Street, Suite 2600, Royal Bank Plaza,
South Tower, Toronto, Ontario M5J
2J1).
About RNC
RNC has a 100% interest in the producing Beta Hunt gold mine
located in Western Australia where
a significant high grade gold discovery - "Father's Day Vein" - was
recently made. RNC has initiated a 40,000 metre drill program on
near mine exploration targets focused on the Father's Day Vein
area, results of which will be incorporated into an updated NI
43-101 compliant Mineral Resource Estimate targeted for Q2 2019.
Beta Hunt gold resource potential is underpinned by multiple gold
shears with gold intersections across a 4km strike length which
remain open in multiple directions adjacent to an existing 5km ramp
network. RNC also has a 28% interest in a nickel joint venture 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 in
the world. RNC owns a 35% interest in Orford Mining Corporation, a
mineral explorer focused on highly prospective and underexplored
areas of Northern Quebec and the
U.S. Carolina Gold Belt. RNC has a
strong management team and Board with over 100 years of mining
experience. 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 success of
the bought deal financing and use of proceeds therefrom, liquidity
and capital resources of RNC, production guidance and the potential
of the Beta Hunt Mine as well as the potential of the Dumont
development project and Orford Mining's Qiqavik, West Raglan,
Jones-Keystone Loflin and Landrum-Faulkner exploration
properties.
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; results of exploration programs; accidents,
labour disputes and other risks of the mining industry; political
instability, terrorism, insurrection or war; or delays in obtaining
governmental approvals, projected cash operating 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, including the most recent Annual
Information Form, 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 law.
SOURCE RNC Minerals