Ronrico placement to finance Simkar gold exploration

Ronrico Explorations (VSE) of Toronto has announced a private placement to finance exploration at the company’s Simkar project at Val d’Or, Que.

After spending $7 million, Ronrico holds a 50% interest in the Simkar project which contains the former Louvicourt Goldfields mine. COATS-listed Louvicourt Gold Mines retains a 50% interest at Simkar where four new gold bearing zones and an estimated probable reserve inventory of over 500,000 tons grading 0.2 oz gold per ton have been identified.

The private placement is comprised of $2 million in 10% convertible debentures, said Ronrico vice-president Paul Brent. He said the debentures will have a 5-year term and will bear a 10% interest rate, payable semi-annually, starting one year from the date that the first debenture was issued.

According to Brent, a tentative agreement has already been concluded with one purchaser for $500,000 and the debenture will be secured by a floating charge against the company’s 50% interest at Simkar.