Royal Nickel Corp(RNX.TO) now Karora Resources(KRR.TO)

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#1 Wed, Jun 17, 2020 - 3:49pm
Joined: Oct 27, 2011

Royal Nickel Corp(RNX.TO) now Karora Resources(KRR.TO)

Name changed from RNC to Karora since Nickel is not presently driving company revenues. New ticker symbol in US is "KRRGF".

I find the present market cap attractive based on:

  • 100k/annum Gold production;
  • lowering AISC, eliminating royalties, growing FCF
  • Agreement for acquisition of Spargos Reward High Grade Gold Project
    • Due diligence underway Potential to fast track new high-grade gold production into project pipeline. Both open pit and underground opportunities: High grade potential as shown by high grade drilling results including 14m @ 46.13 g/t gold in drillhole 19SPRRC0042

Considering the speculative interest in similar junior stage projects; and given their locale in highly productive region of Australia; this company can drive exploration from cash flow... A reverse split would tighten up the share structure; sure... but $2000 gold could drive this to $2-3 a share as well, even without a reverse split.

New website and presentation is at: Karora Resources

Edited by: silverseeker on Jun 17, 2020 - 3:50pm

killing the banker Ponzi one ounce at a time

Wed, Jul 1, 2020 - 11:00pm
Gasivs Buttox
Joined: Aug 12, 2019

Karora (RNC) must be a disappointment for Eric

Price rose with Eric’s purchase price of $0.46 in mid-January 2019 to $0.75 in mid Feb but was then followed by gradual decline to $0.38 in mid-May/2019.

TORONTO, Jan. 16, 2019 /CNW/ - RNC Minerals (TSX: RNX) ("RNC" or the "Company") is pleased to announce that it has closed its previously announced bought deal and concurrent private placement financing of a total of 19,565,000 common shares of the Company at a price of $0.46 per common share for aggregate gross proceeds of $8,999,900. Mr. Sprott now beneficially owns or exercises control or direction over 47,737,042 common shares, representing approximately 10.2% of the outstanding common shares

May15/19 Quarterly Report revived interest from $0.38 to $0.71 with release of following drill results:

RNC is on track to complete a resource update by the end of the second quarter of 2019 and will shift its drilling focus from resource definition to a broader exploration campaign to test the substantial exploration potential of each of the four shears on the property. Highlights from assays received to-date include (all drill intervals quoted are true thicknesses):

  • 1,017 g/t over 2.00 m, including 7,621 g/t over 0.27 m in hole WFN-029
  • 395.9 g/t over 4.75 m, including 2,210 g/t over 0.85 m in hole WFN-063
  • 468 g/t over 0.21 m in hole AZ13-156
  • 119 g/t over 6.40 m, including 1,406 g/t over 0.50 m in hole AZ15-013
  • 16.8 g/t over 27.8 m, including 748 g/t over 0.53 m in hole WFN-071

However, by Jun15/19 the stock continued to gradually decline to its Oct/19 low of just $0.33. Dec/Jan/Feb followed with prices hovering at Eric’s purchase price. Then came March/2020 and RNC crashed with entire sector touching a low of just $0.195 followed by a rise to $0.57 in mid-May and yet another decline until its name change in mid-June.

I wonder just how patient Eric can afford to be with this kind of performance.