TORONTO, March 7, 2013 /CNW/ - Royal Nickel Corporation ("RNC") (TSX: RNX) has closed a private placement of 4 million flow-through shares at a price of $0.50 per share for gross proceeds of $2 million. Marquest Capital Markets and Casimir Capital Ltd. acted as the agents for the placement.
"By raising a targeted amount of capital through this flow-through financing we will be able to investigate the regional potential near Dumont and, most importantly, follow-up on a single high grade intersection (1.25m of 4.37% nickel, 5.56 g/t palladium + platinum, 0.46% copper and 0.13 % cobalt) discovered in 2011 at the basal contact of the intrusion. It is prudent to follow-up on this discovery at this time, to ascertain whether further high grade mineralization exists along the footwall contacts outside the known Dumont orebody, particularly as our exploration team has now largely finished its work for the Dumont feasibility study" said Tyler Mitchelson, President and CEO of Royal Nickel Corporation.
RNC has paid Marquest and Casimir a cash commission of $120,000 and issued 240,000 broker warrants exercisable for one year to acquire up to 240,000 common shares at a price of $0.50 per share.
RNC will use the proceeds of the private placement primarily to investigate the high-grade massive sulphide mineralization occurrence described above. Work will also focus on evaluating regional exploration targets that occur within the Dumont property but outside the Dumont resource.
High Grade Intersection at Dumont
A section of polished NQ-size core (47mm diameter) from high grade intersection at RNC's Dumont project
Through previous exploration drilling RNC has identified a high grade intersection at its Dumont project (as reported in RNCs' technical report dated June 22, 2012). The intersection is located northwest of the contemplated prefeasibility open pit and occurs along the basal contact of the Dumont intrusion approximately 450 metres below surface. The intersection consists of a 1.25m core-length massive sulphide interval composed of more than 90% sulphides, containing primarily pyrrhotite and pentlandite. The assay for this massive sulphide interval is shown in table 1 below.
Table 1: Assay for Massive Sulphide Interval in Hole 11-RN-355:
Source: Technical report dated June 22, 2012 available under Royal Nickel's profile on www.sedar.com.
To date, this is the only occurrence that has shown such elevated concentrations of sulphides with high metal grades at the Dumont project. Limited follow-up work in 2011 indicated that this mineralization was limited in extent locally. However, this discovery demonstrates that mineralizing processes capable of producing high-grade massive sulphide mineralization have operated within the Dumont setting, particularly at the basal contact of the intrusion. Further work will focus on following up this intersection through surface and borehole EM surveys and drilling to explore the rest of the 7.5 km long basal contact for similar occurrences.
Partner Process Update
RNC's previously announced formal partnership process is ongoing. At this time, RNC continues to be in discussions with interested parties to invest in the Dumont project either directly or through other investment structures. RNC remains optimistic that partnership and financing arrangements will be completed in advance of the receipt of permits, expected in the second quarter of 2014. There is no assurance that any of the proposals or discussions held to date will lead to a binding proposal or to the signing of definitive agreements.
About Royal Nickel Corporation
Royal Nickel Corporation is a mineral resource company focused primarily on the exploration, evaluation, development and acquisition 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, 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. RNC's common shares trade on the TSX under the symbol RNX.
Unless otherwise indicated, RNC has prepared the technical information in this news release ("Technical Information") based on information contained in the pre-feasibility study dated June 22, 2012, relating to the Company's Dumont Nickel Project and news releases (collectively the "Disclosure Documents") available under RNC's company profile on SEDAR at www.sedar.com. Each Disclosure Document was prepared by or under the supervision of a qualified person (a "Qualified Person") as defined in National Instrument 43-101 of the Canadian Securities Administrators. Readers are encouraged to review the full text of the Disclosure Documents which qualifies the Technical Information. The Technical Information is subject to the assumptions and qualifications contained in the Disclosure Documents.
The Technical Information contained in this news release has been approved by Alger St-Jean, P. Geo., Vice President Exploration of the Company, a Qualified Person under NI 43-101.
This news release is not an offer or a solicitation of an offer of securities for sale in the United States. The securities have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration.
Cautionary Statement Concerning Forward-Looking Statements
This news release contains "forward-looking information" including without limitation statements relating to planned exploration and expected timeframe for receiving permits.
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. The pre-feasibility study results are estimates only, are preliminary in nature and are based on a number of assumptions, any of which, if incorrect, could materially change the projected outcome. Until a positive feasibility study has been completed, and even with the completion of a positive feasibility study, there are no assurances that Dumont will be placed into production. Factors that could affect the outcome 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.
Image with caption: "A section of polished NQ-size core (47mm diameter) from high grade intersection at RNC's Dumont project (CNW Group/Royal Nickel Corporation)". Image available at: http://photos.newswire.ca/images/download/20130307_C2370_PHOTO_EN_24294.jpg
SOURCE: Royal Nickel Corporation
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