Royal Nickel Corporation, whom as of late has been doing business as RNC Minerals (TSX: RNX) this morning announced that it has proposed to change its name to that of Karora Resources as it works to refocus its operation on that of gold from nickel. The proposed name change is in connection with the company entering a purchase agreement to acquire the Spargos Reward Gold Project, located in Western Australia.
The Spargos Reward property is located near RNC’s current properties referred to as Beta Hunt and Higginsville. Historical data on the property includes a JORC 2012 mineral resource estimate of 112,000 oz gold (785,800 tonnes at 4.4 g/t) indicated resource and 19,000 oz (151,000 tonnes @ 4.0 g/t) inferred resource. The property consists of 33 square kilometres of tenures, and has previously had plans for an open pit mine to be put into place on the property. The most notable aspect of the property is the historic Sparagos Reward Gold Mine, which was utilized in the 1930’s and 1940’s, producing 105,397 tonnes at an average grade of 8.56 g/t gold.
The addition of the Spargos property to RNC Minerals current portfolio of gold assets in the region is anticipated to reduce the firms overall per ounce cost structure. The company is currently working towards an AISC (all in sustaining cost) of US$1,000 per ounce.
Under the terms of the purchase agreement, RNC Minerals has made an AUD$25,000 deposit on the property for an exclusive three month window to conduct due diligence. Upon closing, RNC Minerals would be required to be pay AUD$4.0 million for the property to the vendor in the form of either cash or shares at RNC’s discretion. The company is also required to spend at least $2.5 million in exploration over the first two years following the closing of the arrangement.
Additionally, AUD$1.5 million in common shares of RNC are to be issued to the vendor on the commencement of gold production on site, while the vendor is also entitled to an additional $1.0 million in common shares should a new additional indicated gold resource of at least 165,000 oz be delineated on the property.
Finally, shareholders are expected to vote on the changing of the firms name from RNC Minerals to Karora Resources at the firms June 11, 2020 shareholder meeting.
Royal Nickel Corp last traded at $0.56 on the TSX.
Information for this briefing was found via Sedar and RNC Minerals. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
