RNC Minerals has announced that it is withdrawing US$12 million of its capital from the Dumont joint venture formed in April 2017.
RNC Minerals (TSX:RNX) has announced that in lieu of the previously announced debt extension and equity raise RNC is withdrawing US$12 million of its capital from the Dumont joint venture formed in April 2017.
According to the release, RNC will retain US$4 million of cash in the Dumont JV, which it said will be more than sufficient to cover its share of the expenditures that are planned to advance Dumont towards a construction decision.
President and CEO of RNC, Mark Selby said:
“This cash withdrawal avoids significant equity dilution at current price levels and allows a significant reduction in RNC’s debt with the elimination of the majority of its debt payments in 2018. With the improved visibility from the Beta Hunt sale process, we believe that the value of the debt extension announced on May 31, 2018 has been reduced. RNC continues to focus its strategic efforts on the advancement of the Dumont nickel-cobalt project, which contains the world’s largest undeveloped reserves of both cobalt and nickel.”