Commencement of Mine Construction Targeted for Early 2016
TORONTO, June 25, 2015 /CNW/ - Royal Nickel Corporation ("RNC") (TSX: RNX) announced today that it has received the Certificate of Authorization for the Dumont Nickel Project from the Quebec Ministry of Sustainable Development, Environment and the Fight Against Climate Change. This authorization is the most significant permit for mining projects in Quebec and positions Dumont to proceed to construction upon completion of financing.
Mark Selby, President and CEO, commented, "The Certificate of Authorization is the most important milestone achieved to date for the Dumont project. Following the appointment of Swedbank as advisors for our contemplated US$600 million senior bond financing, we expect to build on this positive momentum in the coming months. Our objective is to complete the capital raising phase of the project in a timely manner to allow us to begin construction activities by early 2016."
Once constructed, Dumont will be one of Canada's largest base metal mines and will make significant contributions to the Quebec economy as a long-term and low-cost producer of nickel concentrate. Dumont is expected to employ an average of over 500 people in the Abitibi region over a 33-year project life.
"The Quebec government's permitting process is thorough and inclusive of all concerned parties. I am confident that the information exchanges amongst the various stakeholders throughout this process, along with RNC's substantial community engagement effort and commitment, have made Dumont a stronger, more robust project," said Selby. "It has also helped to further align our approach to the project with regional interests, thereby maximizing the benefits to be realized by nearby communities, the Province of Quebec and our investors. Initiatives to safeguard the environment, and the health and safety of the community and our workers, have also been strengthened by this process."
The process of obtaining the certificate of authorization for Dumont included a comprehensive Environmental and Social Impact Assessment as well as public consultations conducted by the Quebec Bureau d'audiences publiques sur l'environnement (BAPE). Under the Quebec Environment Quality Act, the Certificate of Authorization is the main permit required prior to commencing construction activities.
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 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 also owns interests in two advanced stage nickel exploration properties: the Aer-Kidd project near Sudbury, Ontario and the West Raglan project 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.
Cautionary Statements Concerning Forward-Looking Statements
This news release contains "forward-looking information" including without limitation statements relating to the liquidity and capital resources of RNC, the outlook for the nickel market, key milestones for 2015 to 2018, including timing of receipt of the main permit and the potential of the Aer-Kidd and West Raglan projects.
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. There are no assurances that Dumont, or any of RNC's other property interests, will be placed into production. Factors that could affect the outcome include, among others: the inability to raise the funds necessary to achieve the milestones or complete development of Dumont and inability to raise the funds necessary to advance exploration activities; the actual results of development activities at Dumont and exploration activities at Aer-Kidd and West Raglan; project delays; 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; Mélanie Corriveau (French contact), Community Relations Coordinator, T: (819) 727-3777