TORONTO, June 22, 2015 /CNW/ - Royal Nickel Corporation ("RNC") (TSX: RNX) has appointed Swedbank Norway ("Swedbank") as advisors for the contemplated senior bond financing of approximately US$600 million with a five year maturity for its Dumont Nickel Project ("Dumont") located in the Abitibi region of Quebec. Swedbank will work closely with RNC with respect to arranging the senior project bond finance facility and support RNC efforts in international markets to secure the additional equity and other capital required to complete the financing.
Over the last 24 months, Swedbank has raised more than US$7 billion in bond financing for companies in the energy, transportation and mining sectors. In particular, Swedbank has a strong and consistent track-record of successful project financings in the natural resources segment.
Mark Selby, President and CEO of Royal Nickel, commented, "With the receipt of the main environmental permit expected before the end of this month, we are now focusing on the final task of raising sufficient financing to begin construction of Dumont, which is expected to be one of Canada's largest base metal mines. We are excited by the prospect of working with Swedbank to complete both this cornerstone financing and the balance of the capital required to allow construction to begin at Dumont by early 2016. Dumont will be well-positioned to take advantage of the significant improvements expected in the nickel markets through the balance of this decade."
Swedbank is one of the largest banks in the Nordic and Baltic region and has close to 600,000 corporate clients. Through the business area Large Corporates & Institutions, responsible for Swedbank's offering to larger corporations and financial institutions, the investment banking department has established a leading position in the bond market, catering to a global client base.
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 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; Mélanie Corriveau (French contact), Community Relations Coordinator, T: (819) 727-3777, www.royalnickel.com