RNI secures $60m for gold project

Mining junior RNI has announced it has signed a $60 million debt finance package to develop its Grosvenor gold project.

The package, which comprised a split of senior debt and convertible bonds, will be financed by an undisclosed London-based fixed interest fund.

An additional $3.7 million will also be raised through a placement at 7.5 cents per share to the fund.

RNI will use the funding to repay a roughly $17 million short-term debt to a fund managed by Taurus Resources and develop its Grosvenor project 170 kilometres north-west of Meekatharra.

The company said gold production would be able to resume within nine months of financing.

A fund representative will be invited to join the RNI board upon completion of the package.

In its recent half-yearly report, RNI said the rise in the Australian dollar gold price had substantially improved the project’s viability, almost doubling projected free cash flow in the best case scenario.

RNI was advised by Perth based firm Insitor, and was up 16.7 per cent to 7 cents per share at the time of writing.