Message from the Executive Chairman & CEO Ronald Parratt
Renaissance Gold Inc. ("RenGold" or the "Company") reports that a private placement first announced on June 7, 2016 was over-subscribed and RenGold now expects to close on C$1.7 million by the issue of 4.9 million units before July 7. This will bring RenGold's issued and outstanding shares to 36.5 million and cash to approximately C$2.5 million. Over the last several years RenGold took drastic measures to conserve its cash treasury supported by its management and directors who have each made significant sacrifices to assist in the effort to keep its proven technical team together.
As a company that made a lot of money in the past for our shareholders via our predecessor AuEx Ventures Inc. (TSX:XAU) we know how important a tight share structure is in creating real shareholder value. Since we joint venture all of our projects and are fastidious with our cash, management does not expect to go back to the market for some time.
We have had a strong core of individual shareholders through this rough market and corporate shareholders as well, including Barrick, Newmont, Agnico Eagle, and Altius. These companies know us and what we are capable of. If you are unfamiliar with the Company I hope that you will look closely at us and see how tightly our probability matrix of exploration opportunities is run. We cannot promise when, but we can say that the Company has been highly successful in the past and are positioned to do so in the future.
RenGold continues to execute its joint venture model by staking or acquiring quality mineral exploration projects in the Nevada/Utah area with exploration funded by partners earning an interest in those projects. The recent challenges in the junior resource sector created opportunities for the Company to upgrade its project portfolio for little or no cost. Two examples of this are the acquisition of the Maggie Creek and Gilbert South Nevada projects in exchange for NSR royalties. The Company has significantly culled its portfolio of projects to those it believes have the highest potential for exploration success. A focus in 2015 and 2016 has been to upgrade its current portfolio of projects including the drill permitting of its Buffalo Canyon, Nevada project. Management continues to actively present these and other projects in the RenGold portfolio to major mining companies returning to the sector.
In summary, the Company has managed it's cash effectively through these past years while continuing to remain relevant in the market place .We have made it through to a favorable point to raise additional capital. In that process the burn rate has decreased considerably to well under C$1 million per year. The Company will continue to utilize its model of growth through generative exploration work, and discovery through the joint venture model.
Thank you for your interest in Renaissance Gold.
Ronald Parratt, Executive Chairman & CEO