TORONTO, April 25, 2016 /CNW/ - Royal Nickel Corporation ("RNC") (TSX: RNX) (OTCQX: RNKLF) announces that shareholders of VMS Ventures Inc. ("VMS") have overwhelmingly voted in favour of the plan of arrangement pursuant to which RNC will acquire all of the issued and outstanding common shares of VMS.
The arrangement is expected to close on April 27, 2016, subject to applicable regulatory and court approvals and the satisfaction of other customary conditions.
"I am pleased VMS shareholders have voted strongly in favour of this transaction. I look forward to adding exposure to copper production from a 30% share in the Reed Mine, which will be the second producing asset in the RNC portfolio in established and stable mining jurisdictions," said Mark Selby, President and CEO of RNC.
RNC also announces that, due to the large number of VMS shareholders electing the RNC Share Option (as defined under the Plan of Arrangement), those shareholders will receive RNC shares at a rate of 0.392 of an RNC share per VMS share for 62.9% of their VMS shares and cash at a rate of CDN$0.064 per VMS share for the remaining 37.1% of their VMS shares. There is no adjustment to the exchange consideration to be provided to those shareholders who elected the Cash Option or the Full Proration Option (as those terms are defined under the Plan of Arrangement).
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.
About VMS Ventures Inc.
VMS Ventures Inc. acquires, explores, develops, and evaluates mineral properties in Canada. The company primarily explores for copper, zinc, gold, and silver deposits. Its principal property is the Reed Lake project located to the southwest of Snow Lake, Manitoba.
Cautionary Statement Concerning Forward-Looking Statements
This news release contains "forward-looking information" including without limitation statements relating to the plans, intentions, beliefs and current expectations of RNC with respect to business activities and operating performance of the Company.
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.
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