Royal Nickel Corp. RNKLF

RE:$RNX: Russell Starr, brand-new guy at RNC and HGO on AISC

[goldhunter11]

pierreg,
We were trying to sort out the ability of ARX to meet the cash component of $A25M on closing of the proposed HGO deal, using various cash components, including  the bough deal of C$12M (plus a potential 15% over-allotment deal) and the sale of the specimens.  However, there is another chunk of cash we have not touched. This comes from the last PP and private deal with ES which closed in early 2019, link below.

https://www.rncminerals.com/2019-01-16-RNC-Minerals-Closes-9-Million-Bought-Deal-Concurrent-Private-Placement-Financing

Following the closing of the over-allotment, the total amount came to just over $9M (extra cash). My assumption is that this anount (for reporting in 2019) could be used to buy back the 22% of Dumont, or could be used to expand HB further.  Can you, or someone, confirm this, or contact Russel Starr, the new IR person at RNX for his confirmation?
Cheers,
GH11
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pierreg wrote: Insightful posts by BarristerIII on Seeking Alpha April 2nd & 3rd 2019 about Russell Starr, brand-new guy at RNC and HGO and its effect on AISC:

«Just got off the phone with Russell Starr, brand-new guy at RNC, just a few days on the job. (They brought him in at least partly to increase quality of their NRs, a good sign; also to help bring in institutional money.) He defends the previous and current bought deals as opposed to debt, "because debt's what almost killed the company" and that a bought deal "removes market risk." Not sure I'm persuaded, the way this shook out, but what's done is done.
He also insists this latest PP "isn't dilutive"--seemingly meaning that the Higginsville assets are net accretive. Didn't 100% commit to no new stock sales, but anticipates that once that deal closes, they'll likely use debt for further financing. Emphasized the $150 (CAD?) per oz. savings of having the mill.
All in all, I'm at least encouraged by the company taking the time to respond, even if I think some of the responses are a touch flimsy. And I'm definitely encouraged that they seem to have done something tangible to improve quality of future NRs. Bought a little more today.
[…]

https://seekingalpha.com/article/4252614-rnc-minerals-building-base
Thank you for this solid analysis. I'm long RNKLF and like the HGO acquisition, though I am (like many shareholders, and apparently the market at large) not happy about the dilutive financing used to accomplish it.
As extensively discussed in another SA article https://seekingalpha.com/article/4214970-rnc-minerals-short-situation-indicates-short-squeeze-can-happen RNC has been heavily shorted, and this latest tumble appears to be 100% due to new shorting in anticipation of covering with the cheaper bought-deal shares. The consensus in the comments there is that HGO is a good investment, despite RNC's poor execution of the deal that left it vulnerable to this shorting.
But I spoke with RNC Investor Relations yesterday, and the company is insistent that the HGO acquisition will massively reduce its AISC at Beta Hunt, making it very well-bought as long as it passes DD. Like you, I'm very bullish about the company's future success and think this is an excellent buying opportunity--even though the last several months' roller-coaster ride has been frustrating. »