Royal Nickel (RNX-T) July 8, '15 announced today that it has closed the previously announced royalty and private placement transaction with Orion Mine Finance ("Orion"). RNC has received gross proceeds of US$10 million (C$12.6 million1) from Orion in exchange for a 0.75% net smelter return royalty in the Dumont Nickel Project and 10 million RNC common shares (issued at $0.395 per share, the June 26, 2015 closing price of the RNC common shares on the TSX). RNC has the right to re-purchase 50% of the royalty (0.375%) for a cash payment of US$15 million on the 3rd, 4th or 5th anniversary of closing.
RNC will use the proceeds of the financing to advance development efforts, including the generation of bulk samples of roasted concentrate to confirm concentrate roasting as a lower cost processing alternative for the Dumont project, and general working capital purposes.
About Royal Nickel Corporation
Royal Nickel Corporation is a multi-asset mineral resource company focused primarily on the acquisition, exploration, evaluation and development of base metal and platinum group metal properties. RNC's principal asset is the Dumont Nickel Project strategically located in the established Abitibi mining camp, in the municipalities of Launay and Trécesson, 25 kilometres northwest of Amos, Quebec. RNC also owns interests in two advanced stage nickel exploration properties: the Aer-Kidd project near Sudbury, Ontario and the West Raglan project in northern Quebec. RNC has a strong management team and Board with over 100 years of mining experience in the nickel business at Inco and Falconbridge. RNC's common shares and warrants trade on the TSX under the symbols RNX and RNX.WT.
SOURCE Royal Nickel Corporation
For further information:
Rob Buchanan, Director,
Investor Relations,
T: (416) 309-0600,
www.royalnickel.com;
Mélanie Corriveau (French contact),
Community Relations Coordinator,
T: (819) 727-3777
220 Bay Street , Suite 1200, Toronto, ON, M5H 2T7, Canada
www.royalnickel.com |
