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RNC Minerals

RNC Minerals set to transform Western Australia operations as it exercises Higginsville option

On closing, which is expected around June 10 this year, RNC will pay Westgold A$25 million in cash and A$21 million in shares

Higginsville mill
Pictured is the Higginsville mill, 57km to the south of Beta Hunt

RNC Minerals Corp (TSE:RNX) said on Tuesday it had exercised the previously announced option to buy the Higginsville mill (HGO) from Westgold Resources Limited -- a move, which will transform  the miner's gold operations in Western Australia.

On closing, which is expected around June 10 this year, RNC will pay Westgold A$25 million in cash and A$21 million in shares for a total consideration of A$50  million.

RNC expects to finance the cash component with cash available and additional non-dilutive capital.

READ: RNC Minerals announces extension to Higginsville Mill deal; updates first-quarter production

"With the completion of our extensive due diligence process, we look forward to completing this transaction," said Mark Selby, CEO of RNC. 

"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."

He said that once the deal is closed, the group will begin rapidly integrating Beta Hunt and HGO.

Higginsville lies 57km south of RNC's Beta Hunt  mine and 107km south of the regional mining centre of Kalgoorlie.

Cost savings

At Beta Hunt, RNC expects the move to reduce 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 and indicated gold resource, along with a further 0.7 million ounce inferred resource, which  lie on  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.

Shares in Toronto nudged up 1.32% to $0.38.

Contact Giles at [email protected]

Follow him on Twitter@Gile74

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Price: $0.44

Market: TSX
Market Cap: $245.79 m
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RNC Minerals undergoing a 40,000 meter drilling campaign on gold project

RNC Minerals (CVE: RNX) CEO Mark Selby spoke with Proactive Investors at the Prospectors & Developers Association of Canada in Toronto. The company has a 100% interest in the Beta Hunt gold mine located in Western Australia. RNC is currently completing a 40,000 metre drill program, the...

on 6/3/19

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