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Pala Investments Makes US$4 Million Investment into RNC Minerals
Sep. 19, 2017 08:37AM PST
Base Metals Investing RNC Minerals (TSX: RNX) (“RNC”) has entered into a US$4 million 18-month Convertible Term Debt Facility (the “Facility”) with Pala Investments Limited (“Pala”). Mark Selby, President and CEO, commented: “I am pleased to have this investment by Pala, one of the world’s leading mining private equity groups and an investment leader in the battery materials sector. This …
RNC Minerals (TSX: RNX) (“RNC”) has entered into a US$4 million 18-month Convertible Term Debt Facility (the “Facility”) with Pala Investments Limited (“Pala”).
Mark Selby, President and CEO, commented:
“I am pleased to have this investment by Pala, one of the world’s leading mining private equity groups and an investment leader in the battery materials sector. This investment highlights the position of the Dumont Nickel Project as one of the world’s largest resources of both nickel and cobalt, two key components of the batteries used in the growing electric vehicle market.
Dumont is the only fully permitted, shovel ready, large scale nickel and cobalt project located in a low-risk political jurisdiction that could deliver significant volumes of both metals to market this decade.”
The unsecured Facility will bear interest at a rate of 15% per annum payable at the end of the 18-month term. Pala will have the right to convert the debt into RNC shares at a price of C$0.2537 per share (a 25% premium to the RNC share price over a 20-day VWAP), along with certain other conversion rights. As part of the transaction, RNC issued five million warrants to Pala, exercisable for three years at C$0.25 per share.
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