RNC Gold Inc fka RNC

[amarksp]

My understanding is that Marrone is a bit premature in regard to his statement, unless you read it carefully. See statement below.

As soon as Yamana actually pays the cash "loan" for San Andres, then and only then does Yamana have legal rights to San Andres. If by some miracle, another competitive bid is forthcoming it must be done prior to Yamana paying cash "loan" for San Andres. The San Andres loan MUST be closed by December 20, so if a competitive bid is forthcoming it must be done within the next 14 days.

Acquirer would still have to pay $1.8M break cost and fund the deal for San Andres by Dec 20, but break cost really is not very material if another company is truly interested. Will be interesting to see whether a new bid is forthcoming, but most gold majors and intermediates are generally NOT very interested in acquiring mines with under 100K ounces of annual production.

My further understanding is that Canaccord effectively held a gun to RNC's head. Canaccord would not give RNC a bought deal on the required US$22.5M financing, thus would not guarantee that the funds could even be raised. Canaccord was apparently alluding that a full warrant rather than 1/2 warrant might be required to finance the deal. RNC was effectively at risk for not being able to close the San Andres acquisition by Dec 20 as required because Canaccord would not "guarantee" they could raise the required $22.5M at a price certain, if at all.

Thus, my opinion is Canaccord acted in an unprofessional manner. Just my opinion.
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Marrone statement:
"We think San Andres can justify the whole transaction," Peter Marrone, Yamana's chief executive, said on a call on Monday. "We were quite harsh on the other assets when we looked at them. So we carved them back to pretty small values. San Andres is the asset here that generates the most value. Yamana will exercise RNC's existing option to buy the other 25 percent of the mine before the deal closes and said it could still acquire the mine if the bid for RNC fails."