Royal Nickel Closes Brokered Flow-Through Private Placement and Provides Partner Process Update; Proceeds to be Used to Investigate High Grade Intersection at Dumont
TORONTO, March 7, 2013 /CNW/ – Royal Nickel Corporation (“RNC”) (TSX:
RNX) has closed a private placement of 4 million flow-through shares
at a price of $0.50 per share for gross proceeds of $2 million.
Marquest Capital Markets and Casimir Capital Ltd. acted as the agents
for the placement.
“By raising a targeted amount of capital through this flow-through
financing we will be able to investigate the regional potential near
Dumont and, most importantly, follow-up on a single high grade
intersection (1.25m of 4.37% nickel, 5.56 g/t palladium + platinum,
0.46% copper and 0.13 % cobalt) discovered in 2011 at the basal contact
of the intrusion. It is prudent to follow-up on this discovery at this
time, to ascertain whether further high grade mineralization exists
along the footwall contacts outside the known Dumont orebody,
particularly as our exploration team has now largely finished its work
for the Dumont feasibility study” said Tyler Mitchelson, President and
CEO of Royal Nickel Corporation.
RNC has paid Marquest and Casimir a cash commission of $120,000 and
issued 240,000 broker warrants exercisable for one year to acquire up
to 240,000 common shares at a price of $0.50 per share.
RNC will use the proceeds of the private placement primarily to
investigate the high-grade massive sulphide mineralization occurrence
described above. Work will also focus on evaluating regional
exploration targets that occur within the Dumont property but outside
the Dumont resource.
High Grade Intersection at Dumont
A section of polished NQ-size core (47mm diameter) from high grade
intersection at RNC’s Dumont project
Through previous exploration drilling RNC has identified a high grade
intersection at its Dumont project (as reported in RNCs’ technical
report dated June 22, 2012). The intersection is located northwest of
the contemplated prefeasibility open pit and occurs along the basal
contact of the Dumont intrusion approximately 450 metres below surface.
The intersection consists of a 1.25m core-length massive sulphide
interval composed of more than 90% sulphides, containing primarily
pyrrhotite and pentlandite. The assay for this massive sulphide
interval is shown in table 1 below.
Table 1: Assay for Massive Sulphide Interval in Hole 11-RN-355:
_______________________________________________________________ |From |To |Interval|Nickel|Copper|Cobalt|Platinum |Palladium| |(m) |(m) |(m) |(%) |(%) |(%) |(g/t) |(g/t) | |______|______|________|______|______|______|_________|_________| |572.95|574.20| 1.25 | 4.37 | 0.46 | 0.13 | 2.05 | 3.51 | |______|______|________|______|______|______|_________|_________|
Source: Technical report dated June 22, 2012 available under Royal
Nickel’s profile on www.sedar.com.
To date, this is the only occurrence that has shown such elevated
concentrations of sulphides with high metal grades at the Dumont
project. Limited follow-up work in 2011 indicated that this
mineralization was limited in extent locally. However, this discovery
demonstrates that mineralizing processes capable of producing
high-grade massive sulphide mineralization have operated within the
Dumont setting, particularly at the basal contact of the intrusion.
Further work will focus on following up this intersection through
surface and borehole EM surveys and drilling to explore the rest of the
7.5 km long basal contact for similar occurrences.
Partner Process Update
RNC’s previously announced formal partnership process is ongoing. At
this time, RNC continues to be in discussions with interested parties
to invest in the Dumont project either directly or through other
investment structures. RNC remains optimistic that partnership and
financing arrangements will be completed in advance of the receipt of
permits, expected in the second quarter of 2014. There is no assurance
that any of the proposals or discussions held to date will lead to a
binding proposal or to the signing of definitive agreements.
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. RNC’s common shares trade
on the TSX under the symbol RNX.
Unless otherwise indicated, RNC has prepared the technical information
in this news release (“Technical Information”) based on information
contained in the pre-feasibility study dated June 22, 2012, relating to
the Company’s Dumont Nickel Project and news releases (collectively the
“Disclosure Documents”) available under RNC’s company profile on SEDAR
at www.sedar.com. Each Disclosure Document was prepared by or under the supervision of a
qualified person (a “Qualified Person”) as defined in National
Instrument 43-101 of the Canadian Securities Administrators. Readers
are encouraged to review the full text of the Disclosure Documents
which qualifies the Technical Information. The Technical Information is
subject to the assumptions and qualifications contained in the
The Technical Information contained in this news release has been
approved by Alger St-Jean, P. Geo., Vice President Exploration of the
Company, a Qualified Person under NI 43-101.
This news release is not an offer or a solicitation of an offer of
securities for sale in the United States. The securities have not been
and will not be registered under the U.S. Securities Act of 1933, as
amended, and may not be offered or sold in the United States absent
registration or an applicable exemption from registration.
Cautionary Statement Concerning Forward-Looking Statements
This news release contains “forward-looking information” including
without limitation statements relating to planned exploration and
expected timeframe for receiving permits.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of RNC 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 achieve the milestones or
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 RNC 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 RNC 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.
SOURCE Royal Nickel Corporation