TORONTO, June 9, 2014 /CNW/ - Royal Nickel Corporation ("RNC") (TSX: RNX) is pleased to announce that, further to its news release of June 2, 2014, it has signed a definitive agreement with the primary selling shareholders of True North Nickel Inc. ("True North") to acquire approximately 56% of True North, a private company whose main asset is a 100% interest in the West Raglan nickel sulphide project located in Quebec.
"We are excited to be adding True North's high grade sulphide nickel and PGM exploration targets at the West Raglan project to RNC's project portfolio. Located in northern Quebec, in an area that hosts two existing nickel mines, we believe West Raglan is a very promising exploration opportunity. With definitive agreements now signed, we look forward to having Donald McInnes and Mark O'Dea join the RNC team as director and Special Advisor, respectively, upon closing of the transaction," said Mark Selby, President and CEO of RNC.
The definitive agreement provides that RNC's acquisition of an approximate 56% interest in True North is for a consideration of approximately 5.6 million RNC Common Shares. Closing is conditional on 50.1% of the outstanding True North shares accepting on a fully diluted basis. Closing is anticipated on June 12, 2014, but not later than July 4, 2014.
About Royal Nickel Corporation
Royal Nickel Corporation is a 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 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.
Cautionary Statement Concerning Forward-Looking Statements
This news release contains "forward-looking information" including without limitation statements relating to the completion of the transaction contemplated by the definitive agreement and the potential of the West Raglan project.
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. Factors that could affect the outcome include, among others: failure of the parties to satisfy conditions of closing under the definitive agreement; future prices and the supply of metals; the results of drilling; inability to raise the money necessary to incur the expenditures required to retain and advance the properties; environmental liabilities (known and unknown); general business, economic, competitive, political and social uncertainties; accidents, labour disputes and other risks of the mining industry; political instability, terrorism, insurrection or war; or delays in obtaining governmental approvals. 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.
Cautionary Statement Concerning Definitive Agreements
The transaction will be subject to TSX approval. The transaction is subject to the parties respective due diligence investigations and customary closing conditions. There is no assurance that the transaction will be completed as planned or at all.
Information Concerning West Raglan Property:
Information concerning the West Raglan property in this news release is taken from sources, some of which are historical, that RNC believes to be reliable, but RNC has not verified the information and does not assume responsibility for such third party information. The proximity to two producing nickel mines does not mean the West Raglan project will obtain similar results. West Raglan is an exploration project without any current resource estimates and there is no certainty that any such estimates will ever be established.
SOURCE: Royal Nickel Corporation
For further information: Rob Buchanan, Director, Investor Relations, T: (416) 363-0649, www.royalnickel.com; Mélanie Corriveau (French contact), Community Relations Coordinator, T: (819) 727-3777