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RNI funding falls through

9th April 2015

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – ASX-listed gold developer RNI is again looking for a funding partner for its Grosvenor gold project after a A$60-million project financing package from a London-based fund fell through.

Last month, RNI announced that it had signed a term sheet for the A$60-million project financing package to fund the development of the project in Western Australia. The funding package comprised a split of senior debt and convertible bonds, and would have been accompanied by a A$3.7-million share placement to the London-based fixed interest fund.

However, RNI said this week that the company had not yet received the placement monies from the fund, prompting RNI to terminate the fund’s rights to the placement and its subsequent exclusive rights to a due diligence.

Instead, the company had restarted negotiations with other parties that had remained active in the RNI data room in order to secure the necessary project financing to bring the Grosvenor project into production.

Meanwhile, RNI had also extended the repayment date of its bridging debt facility with Taurus Resources No 2 Fund by a further month, until May 7, to allow RNI to complete project financing and joint venture discussions.

Edited by Creamer Media Reporter

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