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RNC Minerals Exercises Purchase Option to Acquire Higginsville Mill and Mining Operations

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RNC Minerals Exercises Purchase Option to Acquire Higginsville Mill and Mining Operations

 

 

 

 

 

RNC Minerals (TSX: RNX) 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  from Westgold Resources Limited. 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 milliondeposit 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 JORC2Mineral 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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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. 

2

 As per the 2012 JORC (Joint Ore Reserves Committee) Code.

 

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. 

Posted May 13, 2019

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