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TORONTO, June 25, 2014 /CNW/ - Royal Nickel Corporation ("RNC" or the "Company") (TSX: RNX) announced today that it has filed a preliminary prospectus with the securities regulatory authorities in all of the provinces of Canada, other than the Province of Quebec, in connection with a proposed offering of units, each unit consisting of one common share and one-half of a common share purchase warrant, for gross proceeds of approximately C$5,000,000.
The Company has retained Scotia Capital Inc. on behalf of a syndicate of underwriters. An underwriting agreement for the offering has not yet been entered into by the Company and the underwriters. The units will be priced in the context of the market.
RNC will use the proceeds of the offering primarily to continue to advance its Dumont Nickel Project ("Dumont"), including detailed engineering work in connection with securing certain long-lead items, supporting the permitting process and other related development activities, as well as for general working capital purposes.
The offering is subject to customary conditions and receipt of required regulatory approvals, including the approval of the Toronto Stock Exchange. The offering is expected to close on or about July 11, 2014, assuming timely receipt of all required regulatory approvals.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), and may not be offered or sold in the United States or to or for the account or benefit of U.S. persons (as defined Regulation S under the U.S. Securities Act) absent registration or any applicable exemption from the registration requirements. This news release does not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.
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.
Cautionary Statement Concerning Forward-Looking Statements
This news release contains "forward-looking information" and "forward-looking statements", including, without limitation, statements relating to the timing and use of proceeds of the offering, the execution of an underwriting agreement, and the completion of the offering. Forward-looking information and 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. We cannot assure you that Dumont will be placed into production. Factors that could affect outcomes 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
For further information: Rob Buchanan, Director, Investor Relations, T: (416) 363-0649, www.royalnickel.com