RNI share sale pays off debt

Local explorer RNI has sold its shareholding in Metals X for $23.4 million to pay off all its debt and fund new drilling work on its copper tenements in the Bryah Basin.

RNI received the Metals X shares in July in exchange for its Grosvenor gold project, in a deal that was well received by RNI investors.

At the time of the deal, RNI's acquired shares were worth $20 million.

The shares were 18 million shares were sold at $1.30 per share.

The company will use the funds raised from the share sale to repay its $23 million debt to Taurus Resources and declare itself debt free.

RNI is also conducting an entitlements issue to raise $5.48 million, the proceeds of which will be used to fund a ‘major’ new copper-gold drilling and exploration program at its tenements in the Bryah Basin,

“Our geological team has so far generated 33 priority volcanic hosted massive sulphide targets across our vast Bryah Basin tenement package and we look forward to getting the first drill rigs on site early next month to start systematically testing these targets,” chairman Miles Kennedy said.

GMP Securities acted as broker to RNI on the share sale.

RNI closed 5.5 per cent higher to 1.9 cents each.