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TORONTO, Sept. 6, 2019 /CNW/ - RNC Minerals (TSX: RNX)
("RNC" or the "Company") is pleased to announce gold production for
the month of August 2019 of 8,104
ounces. Paul Andre Huet,
Chairman & CEO, commented: "August gold production of 8,104
ounces is further evidence of a strong start to the second half of
the year, with total July-August production of 15,977 ounces.
Material processed during August was comprised of Beta Hunt mined
material, mined material from the Baloo Stage I open pit and run of
mine stockpiles."
In addition, further to its press release dated August 26, 2019, announcing an $18,000,000 bought deal financing (the
"Offering"), the Company has agreed with Haywood Securities Inc.,
as lead underwriter on behalf of a syndicate of underwriters
(collectively, the "Underwriters"), to amend the terms of the
Offering.
Under the amended terms of the Offering, the Underwriters have
agreed to purchase 45,000,000 units of the Company (the "Units") at
a price of $0.40 per Unit, for gross
proceeds to the Company of $18,000,000. Each Unit will consist of one common
share in the capital of the Company (a "Common Share") and one-half
of one common share purchase warrant (each whole common share
purchase warrant, a "Warrant"). Each Warrant shall be exercisable
to acquire one Common Share (a "Warrant Share") at a price per
Warrant Share of $0.50 for a period
of 24 months from the closing date of the Offering. The Company and
the Underwriters have also agreed to reduce the cash commission
payable by the Company from 6.0% to 4.5% of the gross proceeds from
the Offering.
The Company has granted the Underwriters an over-allotment
option, exercisable at the Issue Price for a period of 30 days
following the closing of the Offering, to purchase up to an
additional 6,750,000 Units (representing 15% of the Units offered
pursuant to the Offering) to cover over-allotments, if any, or for
market stabilization purposes.
The net proceeds received by the Company from the Offering will
be used for the continued ramp up of production at Beta Hunt and
integration with the Higginsville Gold Operations, and for working
capital and general corporate purposes.
The Units under the Offering will be offered by way of short
form prospectus in each of the provinces of Canada, including Québec, pursuant to National
Instrument 44-101 – Short Form Prospectus Distributions. The
Units will not be offered or sold in the
United States except under Rule 144A or Regulation D or in
such other manner as to not require registration under the United
States Securities Act of 1933, as amended.
The Offering is scheduled to close on or about September 20, 2019 and is subject to certain
conditions including, but not limited to, receipt of all regulatory
approvals, including the approval of the Toronto Stock Exchange and
the applicable securities regulatory authorities.
The securities offered in the Offering 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. This press release shall not constitute
an offer to sell or the solicitation of an offer to buy securities
in the United States, nor will
there be any sale of these securities in any jurisdiction in which
such offer, solicitation or sale would be unlawful.
About RNC
RNC is currently focused on the integration of its Beta Hunt
Gold Mine with its recently acquired Higginsville Gold Operation
("HGO") in Western Australia. A significant high-grade gold
discovery - "Father's Day Vein" - was made in September 2018 at Beta Hunt. The significant Beta
Hunt gold resource potential is underpinned by multiple gold shears
with gold intersections across a 4 km strike length which remain
open in multiple directions adjacent to an existing 5 km ramp
network. RNC has a 100% interest in HGO, which is comprised of a
low cost 1.4 Mtpa gold mill and a substantial portfolio of gold
tenements. In addition, RNC owns 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 ninth largest cobalt
reserve in the world. RNC also owns a 24% interest in Orford Mining
Corporation, a mineral explorer focused on highly prospective and
underexplored areas of Northern
Quebec. 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 completion
of the Offering, the use of proceeds of the Offering and the
potential of the Beta Hunt Mine, Higginsville Gold Operation and
Dumont Nickel – Cobalt Project. RNC
cautions readers not to annualize monthly production unless and
until supported by guidance from the Company.
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 laws.
The decision to produce at the Beta Hunt Mine was not based
on a feasibility study of mineral reserves, demonstrating economic
and technical viability, and, as a result, there may be an
increased uncertainty of achieving any particular level of recovery
of minerals or the cost of such recovery, which include increased
risks associated with developing a commercially mineable deposit.
Historically, such projects have a much higher risk of economic and
technical failure. There is no guarantee that anticipated
production costs will be achieved. Failure to achieve the
anticipated production costs would have a material adverse impact
on RNC's cash flow and future profitability. Readers are cautioned
that there is increased uncertainty and higher risk of economic and
technical failure associated with such production decisions. An
updated mineral resource estimate is summarized in the "Technical
Report on The Beta Hunt Mine, Kambalda, Western Australia" dated August 12, 2019. It is further cautioned that
mineral resources are not mineral reserves and do not have
demonstrated economic viability.
A production decision at the Higginsville gold operations was
made by previous operators of the mine, prior to the completion of
the acquisition of the Higginsville gold operations by RNC and RNC
made a decision to continue production subsequent to the
acquisition. This decision by RNC to continue production and, to
the knowledge of RNC, the prior production decision were not based
on a feasibility study of mineral reserves, demonstrating economic
and technical viability, and, as a result, there may be an
increased uncertainty of achieving any particular level of recovery
of minerals or the cost of such recovery, which include increased
risks associated with developing a commercially mineable deposit.
Historically, such projects have a much higher risk of economic and
technical failure. There is no guarantee that anticipated
production costs will be achieved. Failure to achieve the
anticipated production costs would have a material adverse impact
on RNC's cash flow and future profitability. Readers are cautioned
that there is increased uncertainty and higher risk of economic and
technical failure associated with such production
decisions.
SOURCE RNC Minerals