Leveraging DumontFrom the last debt financing, which humorously RNX called an investment.
Usually investments suggest risk but with a 15% interest rate is it really an investment?????
This is what Shelby had to say about Pala betting their money on RNX
TORONTO, Sept. 19, 2017 /CNW/ - RNC Minerals (TSX: RNX) ("RNC") has entered into a US$4 million 18-month Convertible Term Debt Facility (the "Facility") with Pala Investments Limited ("Pala").
Mark Selby, President and CEO, commented, "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."
First RNX is not the owner of Dumont any longer. Or we are led to believe.
How I read this is they (Pala) are lending the money because they might end up with Dumont. Or our 1/2 that is now valued at 15 million.
Then Shelby goes on to tell us what the money is for.
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.
So, why carry one about Dumont when you borrowed money to toss into the beta black hole.
When this is over RNX will be a two bit gold miner in Aus. Having sold off everything to feed the Beta black hole.
The pizz off is that there are resources at Beta that can help.
Amazing even with all the shares printed the share price has dropped so low that he market cap is smaller than it was pre Beta with a nickel price of 4.70 - 5.30.