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RNC Minerals closes deal for Higginsville gold operation

The miner today also reported a C$35 million credit facility for the next phase of its growth
A gold processing mill
Pictured is the Higginsville mill

RNC Minerals Corp (TSE:RNX) has closed its previously announced Higginsville mill (HGO) from Westgold Resources Ltd for A$25 million in cash and issued 56.9 million shares.

The mill will significantly reduce milling costs for the firm's Beta Hunt mine, while HGO also includes a 367,000 ounce historical reserve within a 1.2 million ounce historical measured and indicated gold resource on a 386 sq km land package in the Kalgoorlie gold region.

"Today's announcement is another major step forward for RNC," said Mark Selby, chief executive at RNC.

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"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 high grade and bulk resource potential at Beta Hunt (which was once again confirmed last week), and a large land position in the Kalgoorlie gold region."

The miner today also reported a C$35 million credit facility, which has an initial term of 12 months, which can be extended for a further six months.

The facility bears interest at 10% a year paid monthly. A 1% cash commitment fee was paid at closing, along with a 2% share fee whereby RNC issued 1.46 million of its shares.

Selby said: "We had significant interest from a number of financing sources and are very pleased to welcome a new financing partner to help us build RNC through our next phase of growth.

"This partner has an excellent track record of providing capital to help build small and mid-cap companies across a range of industries. The financing package provides significant flexibility at a competitive cost which allows us to complete this acquisition and minimize equity dilution."

Contact the author at [email protected]

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