ASX Announcement & Media Release
Wednesday, 12 August 2015
Fast Facts
ASX Code: RNS
Shares on issue: 398.9 million
Market Cap: ~A$16 million
Cash: A$1.6 million (30 June 2015)
Board & Management
Alan Campbell, Non-Exec Chairman
Dave Kelly, Non-Exec Director Justin Tremain, Managing Director Brett Dunnachie, CFO & Co. Sec. Vireak Nouch, Country Manager
Company Highlights
Targeting large gold systems in an emerging Intrusive Related Gold province in Cambodia
First mover in a new frontier
Okvau Deposit (100% owned): Indicated and Inferred Mineral Resource Estimate of 1.13Moz at
2.2g/t Au (refer Table One)
PFS completed and demonstrates high grade, low cost, compelling development economics:
830,000 ounces in single pit
Production to 100,000 ounces pa over 8 year mine life
(average 91,500oz pa LOM)
AISC US$611/oz first 5 years
(US$735/ounce LOM)
NPV(5%) US$174M
IRR 35% pa
Payback ~2.6 years
Clear pathway to development
Significant resource growth potential. Okvau Deposit remains
'open' and multiple nearby high
priority, untested targets
Registered Office
78 Churchill Avenue
SUBIACO WA 6008
T: +61 8 9286 6300
F: +61 8 9286 6333
W: www.renaissanceminerals.com.au
E: admin@renaissanceminerals.com.au
Agreement to Restructure A$22.5M in Milestone Payments into a 1.5% Royalty
Agreement reached with OZ Minerals to swap A$22.5M in outstanding deferred milestone payments for a capped 1.5% gross smelter royalty Renaissance retains 100% unencumbered ownership of the Okvau Gold Project with future payments limited to the capped royalty on productionRenaissance Minerals Limited (ASX: RNS) ("Renaissance" or the "Company") is pleased to announce that it has reached an agreement with the previous owner of the Cambodian Gold Project ("Project"), OZ Minerals Ltd ("OZ Minerals"), to cancel the two outstanding milestone payments, which total A$22.5 million, in exchange for a production royalty.
Renaissance acquired the Project in May 2012 from OZ Exploration Pty Ltd ("OZ Exploration"), a wholly owned subsidiary of OZ Minerals. Under the terms of the acquisition agreement dated February 2012 (as subsequently amended in September 2013), Renaissance was required to make the following payments:
Cash payment of A$10.0 million upon a 'Decision to Mine'; and
Cash payment of A$12.5 million 6 months after first gold production.
Given the difficult market conditions and depressed valuations, Renaissance and OZ Minerals have agreed to extinguish both outstanding payments. In consideration, Renaissance will grant to OZ Minerals a 1.5% gross smelter royalty over future production from the Okvau and O'Chhung project areas. Total payments to be made by Renaissance under the royalty will be capped at A$22.5 million.
Renaissance's Managing Director, Justin Tremain commented:
ENDS
1 Reference is made to the Company's ASX release dated 27 July 2015 titled Okvau PFS Demonstrates Compelling Project Economics. All material assumptions underpinning the production target or the forecast financial information continue to apply and have not materially changed.
Table One | Okvau Mineral Resource Estimate - July 2015
July 2015 JORC Resource (0.6g/t gold cut-off) Tonnage (Mt) Grade (g/t Au) Gold (Koz)Indicated 13.2 2.3 962
Inferred 2.7 2.0 169
Total 15.8Mt 2.2g/t 1,131
The information in this report that relates to the Mineral Resources for the Okvau Gold Deposit was prepared by International Resource Solutions Pty Ltd (Brian Wolfe), who is a consultant to the Company, who is a Member of the Australian Institute of Geoscientists (AIG), and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined by the 2012 edition of the "Au stralasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Wolfe consents to the inclusion of the matters based on his information in the form and context in which it appears.
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