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TORONTO, Sept. 20, 2019 /CNW/ - RNC Minerals (TSX: RNX)
("RNC" or the "Company") is pleased to announce that it has
closed its previously announced bought deal financing, including
the partial exercise of the over-allotment option, of 46,156,000
units of the Company (the "Units"), at a price
of $0.40 per Common Share (the "Issue Price"), for gross
proceeds to the Company of $18,462,400 (the "Offering").
Each Unit consists 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 Warrants are listed on the
Toronto Stock Exchange under the symbol RNX.WT.
The Offering was underwritten on a "bought deal" basis by a
syndicate of underwriters led by Haywood Securities Inc. and
including CIBC World Markets Inc. (the "Underwriters"). Red Cloud
Klondike Strike Inc. acted as selling agent.
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 toresults of
exploration at the Beta Mine, the potential to generate revenue
from nickel production and information about the timing,
potential, extent and success of mining at the Beta Hunt Mine and
Higginsville Gold Operations and the ability to monetize
mineralized material at the Beta Hunt Mine..
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.
Cautionary Statement Regarding the Beta Hunt Mine and
Higginsville
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 SLM'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. 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 the Corporation'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