TORONTO, March 16, 2016 /CNW/ - Royal Nickel Corporation ("RNC") (TSX: RNX) announces that it has successfully completed the transaction announced on February 1, 2016 and has acquired an additional 46% of Salt Lake Mining Pty Ltd. ("SLM") to increase its ownership stake to 66%.
The additional 46% stake was acquired from the existing SLM shareholders in exchange for 31.9 million common shares of RNC. The 20% interest in SLM acquired by RNC on February 1, 2016 was in exchange for CDN$2.5 million.
"We are excited about the ongoing ramp up of low cost gold and nickel production at SLM's Beta Hunt Mine in Western Australia. We will work hard with SLM management to ramp up gold into full production, expected to reach over 50koz on an annualized basis by the end of 2016, and aggressively advance the significant exploration potential. With this transaction completed, we look forward to now pushing forward on the acquisition of VMS Ventures, which was announced on February 1st along with the SLM transaction" said Mark Selby, President and CEO of RNC.
As announced by RNC in its news release dated March 7, 2016, a Preliminary Economic Assessment study ("PEA"), prepared as a NI 43-101 compliant Technical Report, for the Beta Hunt Mine (SLM's main asset) has been filed under RNC's profile on SEDAR at www.sedar.com. The Base case results (100% basis) from the PEA yielded a US$65 million NPV8% (CDN$87 million). Each US$100/oz increase in the gold price increases NPV8% by US$14 million (CDN $19 million). 1, 2
The disclosure of scientific and technical information contained in this news release has also been approved by Alger St-Jean, P. Geo., Vice President Exploration of RNC and Johnna Muinonen, Vice President Operations of RNC, both Qualified Persons under NI 43-101.
About Royal Nickel Corporation
Royal Nickel Corporation is a multi-asset mineral resource company focused primarily on the acquisition, exploration, evaluation and development of base metal and precious metal properties. RNC's principal assets are its majority stake in the producing Beta Hunt nickel and gold mine in Western Australia and the Dumont Nickel Project located in the established Abitibi mining camp in Quebec. RNC also owns a majority interest in the West Raglan and Qiqavik projects in northern 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 and warrants trade on the TSX under the symbols RNX and RNX.WT. RNC also trades on the OTCQX market under the symbol RNKLF.
SLM is a private company based in Australian focused on developing mineral properties. Its main asset is the Beta-Hunt nickel-gold mine located in Western Australia.
Cautionary Statement Concerning Forward-Looking Statements
This news release contains "forward-looking information" including without limitation statements relating to RNC further increasing its ownership of SLM and the potential of the Beta Hunt Mine.
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 sign definitive agreements and satisfy conditions of closing; 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, projected cash costs, failure to obtain regulatory or shareholder 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.
1 Reference is made to the Technical Report on the Beta Hunt Mine dated March 4, 2016, filed under RNC's profile at www.sedar.com and www.royalnickel.com.
2 Figures are at asset level and do not include repayment of existing debt facility. March 4, 2016 CDN$/US$ exchange rate was 1.334. Key assumptions include: gold price of US$1,150/oz; nickel price of US$4.00/lb in 2016, US$5.25 in 2017 and US$6.50 in 2018+; and A$/US$ f/x of 0.72.
SOURCE Royal Nickel Corporation
For further information: Rob Buchanan, Director, Investor Relations, T: (416) 309-0600, www.royalnickel.com; Mélanie Corriveau (French contact), Community Relations Coordinator, T: (819) 727-3777