RNC Announces Completion of Toll Processing Agreement and Purchase Option with Westgold

RNC Minerals Corporation (“RNC”) (TSX: RNX) has completed the previously announced (see RNC news release dated February 13, 2017) toll processing and purchase option agreements with Westgold Resources Limited (“Westgold”). Ore processing under the toll agreement is expected to commence on or about July 22, 2017. The purchase option agreement sets forth the detailed terms under which RNC would acquire Westgold’s South Kalgoorlie Operations (“SKO”) in the event RNC elects to exercise the option. RNC has not yet made a determination as to whether it will exercise the option.
As quoted in the press release:

Mark Selby, President and CEO of RNC, commented “The tolling agreement with Westgold provides RNC with a lower cost toll milling alternative for Beta Hunt gold, while the option agreement provides us with an option to significantly expand our Kalgoorlie footprint through a potential acquisition of the SKO mining assets and milling infrastructure which is located approximately 30 km from RNC’s Beta Hunt Mine. The extension to the Auramet copper prepayment agreement provides additional liquidity to support the ramp-up of gold production at the Beta Hunt Mine, which achieved commercial production in June 2017. We continue to look forward to robust performance at Beta Hunt in the second half of 2017 to deliver our previously announced 2017 production guidance.”

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