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RNI raises funds to repay debt

RNI raises funds to repay debt

Photo by Bloombeg

22nd September 2015

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – ASX-listed junior RNI will raise A$5.4-million through an entitlement issue to partly repay its Taurus debt facility and to cover working capital.

The entitlement offer would be made on the basis of one new fully paid ordinary share for every two fully paid shares held, and would be priced at 1.5c a share. Based on the company’s existing capital, it was estimated that some 365.3-million new shares would be issued.

The entitlement offer was partly underwritten to the value of A$5-million by GMP Securities Australia.

Some of the funds would be used to repay a portion of an existing A$23-million debt facility with Taurus, which was repayable by November 30.

The company could repay the debt facility through a combination of existing cash, proceeds from the entitlement offer and RNI shares valued at up to A$2.5-million, and the sale of shares in fellow-listed IMX Resources.

Surplus capital following the repayment of the Taurus debt would be used for exploration activity at RNI’s Bryah basin portfolio, as well as to cover corporate costs and working capital.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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