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Last updated on April 17, 2014 at 8:59 EDT

Royal Nickel Announces $12 Million Investment in Dumont Nickel Project by Ressources Quebec

August 1, 2012

(All amounts expressed in Canadian dollars unless otherwise indicated)

TORONTO, Aug. 1, 2012 /CNW/ – Royal Nickel Corporation (“RNC” or the
“Corporation”) (TSX: RNX) is pleased to announce that it has signed an
investment agreement with Ressources Québec.  Under the terms of the
agreement, Ressources Québec has acquired an interest in the Dumont
Nickel Project (“Dumont”) and will have the right to receive 0.8% of
the net smelter return in the project in exchange for a purchase price
of $12 million.

“Ressources Québec’s investment in Dumont demonstrates their confidence
in the project and is an example of Quebec’s commitment to the
responsible development of its resource sector. This investment by
Ressources Québec supports our continued momentum as we work toward
delivery of a full feasibility study for Dumont by mid-2013.  In
addition to our existing working capital, this financing should provide
sufficient capital for RNC to complete the feasibility study and
continue our permitting work” said Tyler Mitchelson, President and CEO
of RNC.

“Ressources Québec is pleased to make this investment in the Dumont
Project. Our detailed review of the project has given us confidence
that the development of Dumont will create tremendous value for the
Abitibi region and the economic development of Quebec. We look forward
to its anticipated start-up in late 2015″ said Denis Williams, General
Manager of Ressources Québec.

The Dumont Nickel Project is expected to create approximately 1400 jobs
during construction and an average of over 500 full-time jobs when in
full production.

Pursuant to the agreement between RNC and Ressources Québec, RNC
receives $12 million and Ressources Québec is entitled to receive 0.8%
of the net smelter return from the sale of minerals produced from
Dumont and receives a 2% undivided co-ownership interest in the
property.  RNC has the right to repurchase, at any time after the fifth
anniversary, all or any portion of Ressources Québec’s interest for $10
million for each 0.2% of the net smelter return, to a maximum
consideration of $40 million for the entire interest (including the 2%
interest in the property). 

Prior to this transaction, Ressources Québec completed a review of all
aspects of RNC and the Dumont project to its own satisfaction.

RNC intends to use the funds raised under the financing to continue to
move forward with activities related to the development of Dumont,
including ongoing work on a 43-101 compliant feasibility study and
permitting as well as working with its advisor, Rothschild, to bring in
a partner for a 30-45% interest in Dumont.  RNC is currently in
discussions with potential partners in Europe, Japan, and China with
goal of securing a partner by late 2012 or early 2013.

About Ressources Québec

Ressources Québec, a new Investissement Québec subsidiary, specializes
in the mining and hydrocarbon industries; it will consolidate and spur
government investment in projects carried out by mining companies and
the hydrocarbon sector.

About Royal Nickel Corporation

Royal Nickel Corporation is a mineral resource company focused primarily
on the exploration, evaluation, development and acquisition 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, 25 kilometres northwest of Amos, Quebec. RNC has a strong
management team and Board with over 100 years of mining experience in
the nickel business at Inco and Falconbridge. The Corporation’s common
shares and warrants trade on the TSX under the symbols RNX and RNX.WT.

Cautionary Statement Concerning Forward-Looking Statements

This news release contains “forward-looking information” including
without limitation statements relating to the delivery of a full
feasibility study, goal of completing the sale of an interest to a
partner by late 2012/early 2013, anticipated start-up of mining, and
anticipated number of jobs to be created by the project. Readers should
not place undue reliance on forward-looking statements.

Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Corporation to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements. The
pre-feasibility study results are estimates only, are preliminary in
nature and are based on a number of assumptions, any of which, if
incorrect, could materially change the projected outcome. Until a
positive feasibility study has been completed, and even with the
completion of a positive feasibility study, there are no assurances
that Dumont will be placed into production. Factors that could affect
the outcome include, among others: the actual results of development
activities; project delays; inability to raise the funds necessary to
complete development; general business, economic, competitive,
political and social uncertainties; future prices of metals;
availability of alternative nickel sources or substitutes; actual
nickel recovery; conclusions of economic evaluations; changes in
project parameters as plans continue to be refined; accidents, labour
disputes and other risks of the mining industry; political instability,
terrorism, insurrection or war; delays in obtaining governmental
approvals, necessary permitting or in the completion of development or
construction activities. For a more detailed discussion of such risks
and other factors that could cause actual results to differ materially
from those expressed or implied by such forward-looking statements,
refer to RNC’s filings with Canadian securities regulators available on
SEDAR at www.sedar.com.

Although the Corporation has attempted to identify important factors
that could cause actual actions, events or results to differ materially
from those described in forward-looking statements, there may be other
factors that cause actions, events or results to differ from those
anticipated, estimated or intended. Forward-looking statements
contained herein are made as of the date of this news release and the
Corporation disclaims any obligation to update any forward-looking
statements, whether as a result of new information, future events or
results or otherwise, except as required by applicable securities laws.

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SOURCE Royal Nickel Corporation


Source: PR Newswire