Royal Nickel's move into gold gathers pace
RNC Minerals (previously Royal Nickel Corp) (TSE:RNX) stock is up 120% this year as the company makes forays into primary gold mines and a resurgent nickel price underpins its operating assets.
The gold focus is reflected in the company’s name change and last week RNC closed on $9.2 million in financing as it ramps up and development of its 100%-owned Beta Hunt gold and mine in Australia, which RNC acquired in May this year.
Well-know mining financier Eric Sprott participated in the equity financing and now owns around 10% of the company worth $98 million on the TSX.
RNC is targeting total 2016 gold production of 35,000 to 45,000 ounces and the mine located in West Australia is expected to reach an annualized run-rate of around 60,000 in early 2017.
RNC principal asset is the permitted Dumont Nickel project located in the established Abitibi Mining camp in Quebec. The company also owns an interest in the advanced stage nickel exploration Aer-Kidd project near Sudbury, Ontario, a 68% stake in West Raglan – an advanced high grade Ni-Cu-PGM property located in northern Quebec via its holding in True North Nickel – and a 30% interest in the Reed Mine copper and gold mine in Manitoba through its 30% interest in VMS Ventures.