RNI debt facility falls through

RNI shares lost more than a fifth of their value after the company announced its financing deal with a London-based fixed interest fund had fallen through.

The Miles Kennedy-chaired company said it had not received $3.7 million that the fund committed to in the company’s recent placement and, as a result, had terminated the fund’s rights to an exclusive 30-day due diligence period to complete a $60 million debt financing package.

“RNI has re-engaged with parties who remain active in the dataroom to secure the necessary project financing to bring the Grosvenor gold project into production,” RNI said in a statement.

Last month, RNI announced it had signed the $60 million debt financing package to help repay a $17 million short-term debt to a fund managed by Taurus Resources, and develop its Grosvenor project located north-west of Meekatharra.

RNI has reached an agreement with Taurus to extend its existing debt facility by a further month to May 7, to allow time for the company to conclude project financing and joint venture discussions with other parties.

RNI shares were 22.9 per cent lower at 5.7 cents per share at 12:50pm.