11:06 AM EDT, 09/19/2017 (MT Newswires) -- RNC Minerals (RNX.TO) has entered into a US$4 million 18-month Convertible Term Debt Facility with Pala Investments Limited.

The unsecured Facility will bear interest at a rate of 15% per annum payable at the end of the 18-month term. Pala will have the right to convert the debt into RNC shares at a price of C$0.2537 per share (a 25% premium to the RNC share price over a 20-day VWAP), along with certain other conversion rights. As part of the transaction, RNC issued five million warrants to Pala, exercisable for three years at C$0.25 per share.

Proceeds of the Facility will be used for general RNC corporate purposes and to fund the on-going ramp-up of the RNC Beta Hunt gold mine.

RNC shares were recently up 2.6% at $0.20 apiece.

Price: 0.20, Change: +0.005, Percent Change: +2.6