TORONTO, June 21 /CNW/ - Independent Nickel Corp. (INI: TSX-V) (the
"Company") reports that it has closed the acquisition of the Net Smelter
Return Royalty ("NSR") of up to 3% on Victory Nickel Inc.'s Minago nickel
deposit, as well as the 2% NSR on the Company's own Lynn Lake mine property,
as previously announced on April 17, 2007.
"The Minago Royalty is an obvious compliment to Independent Nickel's Lynn
Lake Nickel deposit," stated Independent Nickel President and CEO, Richard
Murphy. "Both assets provide shareholders of Independent Nickel with exposure
to advance staged nickel deposits in a very pro-mining jurisdiction. This
acquisition provides diversification at the project level and represents a
strategic asset to the Company. The Minago Royalty gives our shareholders
upside exposure to a high quality nickel deposit and comes with no operational
or sustaining capital obligations."
The re-purchase of the Lynn Lake royalty will significantly enhance the
economics of the Company's own project.
Under the terms of the purchase agreement, the Company paid $5 million in
cash and issued 2,500,000 shares of the Company, to Glencairn Gold
Corporation, in exchange for the two royalties. The shares are subject to an
escrow agreement that provides for their release from escrow on a graduated
basis over two years.
The Minago royalty payments are determined on a sliding scale, based on
nickel prices. When the selling price for nickel exceeds US$6/lb the royalty
is 3%. If the selling price for nickel is between US$5 and US$6/lb the royalty
is 2%. If the selling price for nickel is between US$4 and US$5/lb the royalty
is 1.5%. And if the selling price for nickel is below US$4/lb the royalty is
1%. Nickel currently sells for approximately US$17/lb.
A Preliminary Economic Assessment on the Minago property was filed on
SEDAR by Nuinsco Resources Limited on November 28, 2006.
The Company's web site is www.independentnickel.com.
This document may contain forward-looking statements relating to
Independent Nickel Corp.'s (INI) operations or to the environment in which it
operates. Such statements are based on operations, estimates, forecasts and
projections. They are not guarantees of future performance and involve risks
and uncertainties that are difficult to predict and may be beyond INI's
control. A number of important factors could cause actual outcomes and results
to differ materially from those expressed in forward-looking statements,
including those set forth in other public filings. In addition, such
statements relate to the date on which they are made. Consequently, undue
reliance should not be placed on such forward-looking statements. INI
disclaims any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise, save and except as may be required by applicable securities laws.
THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY
OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE
For further information:
For further information: Independent Nickel Corp., Richard Murphy,
President and CEO, Tel: (705) 521-8444, Email: firstname.lastname@example.org, 957
Cambrian Heights Drive, Suite 102, Sudbury, Ontario, P3C 5M6