RNC Minerals on Dec. 17 announced plans to raise up to C$10.3 million for exploration and development work at the Beta Hunt gold mine in Western Australia.
The group has an agreement with a syndicate of underwriters for a bought-deal share offer priced at 46 Canadian cents apiece to raise just over C$6 million and a private placement at the same price for C$3 million. The underwriters have an overallotment option that could take the financing to just over C$10.3 million. The syndicate is led by Haywood Securities Inc., which is also the sole bookrunner for the offering.
The bought-deal offer and the placement are expected to close around Jan. 16, 2019.
RNC launched a 40,000-meter drilling program at Beta Hunt in November, targeting a resource update in the second quarter of 2019.
President and CEO Mark Selby said in October that the company was considering an Australian listing after recent exploration success at Beta Hunt. The discoveries, which included a 43-kilogram stone containing an estimated 1,100 ounces of gold, sent the company's share price surging on the Toronto Stock Exchange in September.