TORONTO, May 13, 2019 /CNW/ - RNC Minerals (TSX: RNX)
("RNC") is pleased to announce that it has exercised the
previously-announced (see RNC news release dated March 26, 2019) purchase option to acquire the
Higginsville Gold Operation ("HGO") from
Westgold Resources Limited ("Westgold"). On closing,
RNC will pay Westgold A$25 million in
cash and A$21 million in RNC shares
(satisfied by the issuance of 49.8 million RNC shares), for total
consideration of A$50 million
(including the A$4 million deposit
previously satisfied in RNC shares). RNC expects to finance the
cash component of the purchase price with cash on hand and
additional non-dilutive capital. The acquisition is expected to
close on or about June 10, 2019.
The acquisition of the Higginsville operations and its modern,
low cost 1.3 Mtpa gold mill will provide a key piece of RNC's
strategy to unlock the significant potential of its Beta Hunt gold
mine. The Higginsville mill will significantly reduce milling cost
for Beta Hunt (RNC expects processing cost savings in excess of
C$15 per tonne, a 35% reduction). HGO
includes a 367,000 ounce reserve within a 1.2 million ounce
measured & indicated gold resource, along with a further 0.7
million ounce inferred resource1, all located on a 386
square kilometer land position in the Kalgoorlie gold region. RNC
successfully tolled Beta Hunt material through the HGO mill in
2018, achieving 94% gold recovery.
Mark Selby, President and CEO of
RNC, commented "With the completion of our extensive due diligence
process, we look forward to completing this transaction. 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 Mtpa HGO Mill, the
exciting high grade and resource potential at Beta Hunt, and a
large land position in the Kalgoorlie gold region. Once the
transaction closes, RNC will rapidly integrate Beta Hunt and HGO to
begin unlocking this value for our shareholders."
About the Higginsville Gold Project
Higginsville is located 57km south of RNC's Beta Hunt Operation
and 107km south of the regional mining centre of Kalgoorlie (Figure
1). The acquisition includes a 1.3Mt operating processing facility,
historical JORC2 Mineral Resources of 1.9Mozs
and Ore Reserves of 0.37Mozs, and 386 square kilometres of tenure
with gold mineralization potential (Figure 1). A
qualified person has not done sufficient work on behalf of RNC to
classify the historical estimate noted Tables 1 and 2 below as
current mineral resources or mineral reserves and RNC is not
treating the historical estimates as current mineral resources or
mineral reserves. The Higginsville tenements are located along
strike and close to the mining centres of Norseman and St Ives and
cover over 50 kms of the highly prospective Norseman-Wiluna
Greenstone belt.
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1
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The information is
extracted from the report entitled '2018 Annual Update of Mineral
Resources & Ore Reserves' dated on October 2, 2018 and is
available to view on Westgold Resources Limited's website
(www.westgold.com.au) and the ASX (www.asx.com.au). Mineral
Resources are quoted inclusive of Ore Reserves. RNC confirms that
the form and context in which the Competent Person's findings are
presented have not been materially modified from the original
market announcement.A qualified person has not done sufficient work
on behalf of RNC to classify the historical estimate noted here and
in Tables 1 and 2 as current mineral resources or mineral reserves
and RNC is not treating the historical estimates as current mineral
resources or mineral reserves.
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2
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As per the 2012
JORC (Joint Ore Reserves Committee) Code.
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Qualified Person
The scientific and technical
information contained in this news release has been reviewed and
approved by Alger St-Jean, Vice-President, Exploration of RNC, a
Qualified Person under NI 43-101.
About RNC Minerals
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
made. RNC is currently completing a 40,000 metre drill program, the
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 33% 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 Purchase Option, production guidance and the
potential of the Beta Hunt Mine and
Dumont Nickel – Cobalt 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: 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.
SOURCE RNC Minerals