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Pala Investments makes USD4m investment in RNC Minerals

RNC Minerals (RNC) has entered into a USD4 million 18-month Convertible Term Debt Facility with Pala Investments Limited (Pala).

Mark Selby, President and CEO, says: “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.”
Stephen Gill, Pala Investments Managing Partner, says: “We are pleased to provide funding to RNC as they move towards positive project cash generation. We look forward to working with RNC as part of their broader nickel development and consolidation strategy, including providing strategic and financial support where appropriate.”
The unsecured facility will bear interest at a rate of 15 per cent 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 CAD0.2537 per share (a 25 per cent 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 CAD0.25 per share.
Proceeds of the Facility will be used for general RNC corporate purposes and to fund the on-going ramp-up of the RNC Beta Hunt gold mine.

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