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Strategies & Market Trends : Dino's Bar & Grill -- Ignore unavailable to you. Want to Upgrade?

To: Goose94 who wrote (749)	5/9/2013 8:45:01 PM
From: Goose94	Read Replies (2) \| Respond to of 203525

Royal Nickel (RNC-T) to sell 1% NSR for $15-million (U.S.) May 9, 2013 - News Release Royal Nickel Corp. has signed a royalty purchase agreement with RK Mine Finance. Under the terms of the agreement, Red Kite will acquire a 1-per-cent net-smelter-return royalty in the Dumont nickel project for a purchase price of $15-million. All amounts are expressed in United States dollars unless otherwise indicated. "This commitment by Red Kite is a significant endorsement of the Dumont project by a recognized global mine finance firm. This royalty sale provides an attractive form of financing, particularly in current capital market conditions. The additional capital will allow us to continue to aggressively advance the project once the feasibility study is completed by midyear. We look forward to working further with Red Kite as we advance the project," said Tyler Mitchelson, president and chief executive officer of RNC. Pursuant to the agreement between RNC and Red Kite, on closing RNC will receive $15-million, and Red Kite will be entitled to receive 1 per cent of the net-smelter return from the sale of minerals produced from the Dumont nickel project. Closing is expected to occur on May 10, 2013. RNC's Dumont project contains the third-largest nickel reserve in the world and is expected to be among the largest five nickel sulphide operations in the world. RNC is on track to release the results of a feasibility study for the Dumont project by mid-2013, and the permitting process is well under way, with necessary permits expected to be received by the second quarter of 2014. In May, 2012, RNC announced the results of a revised prefeasibility study for Dumont that demonstrated an after-tax NPV 8 per cent of $1.4-billion and an after-tax internal rate of return of 19.5 per cent. Over the 31-year project life, C1 cash costs are estimated to be $4.07 per pound, with average annual nickel production of 91 million pounds (108 million pounds annually over the 19-year mine life). We seek Safe Harbor.