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RNI draws down first A$10m of funding

12th February 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) - Emerging gold miner Resource and Investment NL (RNI) has finalised a A$15-million facility with Taurus Resources No 2 Fund, to fund the restart of production at its Grosvenor plant, in Western Australia.

The ASX-listed RNI said this week that the Taurus facility would enable the company to also step up exploration on priority gold and base-metals targets across its 1 700 km2 tenement holding in the Bryah basin.

The facility with Taurus would be a 12-month bridging loan that RNI would replace with final project development funding once the company received all the regulatory approvals required to restart gold production at the one-million-ton-a-year Grosvenor plant.

The facility carries a 10% interest rate and a 1.5% establishment fee, and would be secured over RNI’s assets.

RNI said on Tuesday that the company had now drawn down the first A$10-million under the facility.

Meanwhile, the company also noted that it had completed the second-phase drilling programme at its Jacques gold prospect, to follow up on gold grades returned from the initial drilling programme.

The initial assay results from the 26-hole programme were imminent.

RNI was scheduled to begin the first phase of reverse circulation drilling at the Orient base-metals and gold project before the end of February, to follow up on surface sampling results.

Edited by Creamer Media Reporter

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