RNC raises $9M for Beta Hunt

TORONTO-listed RNC Minerals has announced a C$9 million bought deal and concurrent private placement financing.
RNC raises $9M for Beta Hunt RNC raises $9M for Beta Hunt RNC raises $9M for Beta Hunt RNC raises $9M for Beta Hunt RNC raises $9M for Beta Hunt

High-grade gold from Beta Hunt

Staff reporter

The company entered into an agreement with Haywood Securities as sole bookrunner and lead underwriter, with a syndicate of underwriters to purchase, on a bought deal basis, 13 million RNC shares at 46c per share for gross proceeds of $6 million.

The underwriters have also agreed to purchase, on a bought deal private placement basis, 6.52 million shares at 46c each for additional gross process of nearly $3 million.

The private placement will be sold to resources investor Eric Sprott or his designee.

Sprott already holds around 10% of RNC and is its largest shareholder.

RNC has agreed to grant the underwriters an overallotment option to increase the size of the offering and private placement by up to an additional 15% to take the total proceeds to $10.34 million.

The company will use the proceeds to fund exploration and development at the Beta Hunt gold mine in Kambalda.

As of November 12, RNC had $18.8 million cash.

A 40,000m drilling program is underway with three rigs to unlock the potential of the mine following the discovery of the high-grade Father's Day Vein in September.

An updated resource is due in the June quarter of next year.

Shares in RNC closed at 50c overnight, valuing the company at $187.2 million.