RNC Minerals is targeting C$12 million to develop its Beta Hunt gold mine and to fund its proposed acquisition of Westgold Resources Ltd.'s Higginsville gold operation in Western Australia.
The company said March 26 that the bought-deal offering with a syndicate of underwriters co-led by Haywood Securities Inc. and Cantor Fitzgerald Canada Corp. will comprise 24,490,000 shares at 49 Canadian cents apiece.
It also granted the underwriters a 15% overallotment option, exercisable for 30 days following closing, which is expected by April 18.
RNC Minerals, which will use some of the proceeds for working capital and general corporate purposes, recently raised C$9.1 million from a similar offering that closed in January.
The company is undertaking a 40,000-meter drill program at Beta Hunt, with results to be included in an updated resource update and mine plan anticipated in the second quarter.